Understanding Interest: Savings Accounts, Investments, and Loans

What happens when you put money in a savings account?

• The bank charges you a fee

• The bank pays you interest

• The bank gives you a loan

• The bank invests your money.

Match the following types of interest with their descriptions: Savings Account Interest, Investment Interest, Loan Interest.

• Money You Earn (Safe and Slow Growth)

• Money You Earn (Safe and Slow Growth)

• Money You Pay (Costs You More Over Time)

• Money You Pay (Costs You More Over Time)

• Money You Earn or Lose (Higher Risk, Higher Reward)

• Money You Earn or Lose (Higher Risk, Higher Reward)

When you borrow money, you have to pay (a)   to the lender for using their money.

• a fee

• interest

• a deposit

• a penalty

What is income?

• Money earned from work

• Money spent on groceries

• Money borrowed from a bank

• Money lost in investments.

Match the following types of expenses with examples: Fixed expenses, Variable expenses.

• Rent

• Groceries

• Insurance

• Entertainment

• Entertainment

• Insurance

• Groceries

• Rent

Income is the money earned from (a)   . A) work B) expenses C) debt D) savings.

• work

• expenses

• debt

• savings

Which of the following is a method to stay motivated in achieving financial goals?

• Track Progress

• Spend More

• Ignore Savings

• Delay Planning

Match the following tips with their descriptions:

• Track Progress

• Use apps or savings charts to stay motivated.

• Practice Delayed Gratification

• Wait before making impulse purchases.

• Celebrate Milestones

• Reward progress to stay encouraged.

To avoid impulse purchases, one should practice (a)   . A) Immediate Spending B) Delayed Gratification C) Constant Buying D) Quick Shopping.

• Immediate Spending

• Delayed Gratification

• Constant Buying

• Quick Shopping

Interest earned on a savings account is ____

• The percentage of money you spend per month.

• The percentage a financial institution pays you to borrow your money.

• The percentage of your budget that you spend.

• The percentage of your budget that you don't spend.