*Savings*

Front

Which of the following is NOT a typical goal for a savings account?

• Saving for retirement
• Saving for a down payment on a house
• Saving for a vacation
• Saving for a new car

Back

Saving for a new car

Front

What is a 529 account?

Back

A college savings account to fund future education.

Front

How much of your salary should you ideally save in an emergency fund?

Back

6 months of salary

Front

Reasons for John's paycheck-to-paycheck living?

Back

John's wages are low, the cost of living in John's city is high, John lacks financial education.

Front

How would you distribute your income according to the 50-20-30 rule?

Back

50% for monthly bills and groceries, 20% for your savings account, 30% for your hobbies and entertainment

Front

Explain the difference between compound interest and simple interest.

Back

Compound interest is calculated more frequently on the $1000.

Front

How does a rise in inflation affect the value of money in a savings account?

Back

It decreases the value of your money.

Front

Assuming an annual interest rate of 8%, in how many years will your investment in a savings account double?

Back

9 years

Front

How would you differentiate a saving account from a checking account?

Back

The saving account tends to have higher interest rates.

Front

What does the principle of 'Pay Yourself First' suggest you should do with your paycheck?

Back

Immediately set aside a portion of your paycheck into a savings or investment account