Saving Money Quiz

What is the best reason to save money?

• To spend it all at once on something fun

• To prepare for emergencies and future expenses

• To avoid using banks

• To show off to friends

Which of the following is an example of a fixed expense?

• Buying snacks

• Monthly rent or mortgage

• Movie tickets

• Buying a new phone

What is the recommended percentage of your income to save each month?

• 5%

• 10-20%

• 50%

• 80%

What is an emergency fund?

• Money saved for vacations

• Money set aside for unexpected expenses

• A bank loan

• A fund for buying gifts

What is the difference between a checking and a savings account?

• A savings account earns interest, while a checking account is for daily spending

• A checking account earns more interest than a savings account

• A savings account is used only for shopping

• There is no difference

Which of these is a smart saving habit?

• Spending money first, then saving what’s left

• Saving first, then spending what’s left

• Only saving when you have extra money

• Not saving at all

What is the benefit of compound interest?

• It increases your money by earning interest on both the original amount and past interest

• It allows you to withdraw money without penalties

• It helps you avoid paying taxes

• It keeps your money locked away forever

If you save $100 per month for a year, how much will you have saved (without interest)?

• $1,000

• $1,200

• $10,000

• $12,000

Why should you compare prices before making a purchase?

• To spend as much money as possible

• To get the best deal and save money

• Because it's fun

• To buy the most expensive option

What does it mean to live within your means?

• Spending more money than you make

• Earning enough to afford everything you want

• Spending less or equal to what you earn

• Using credit cards for all purchases