Savings Review 1 - NGPF Middle School

7. Which statement best describes what it means if your bank is "FDIC insured?"

• 1. Bank customers can buy car or health insurance at their bank

• 1. If you have money in your checking or savings account and the bank goes out of business, you are guaranteed to get your money back up to a certain limit

• 1. If you lose your wallet and the cash inside is missing, your bank will pay to replace it up to a certain amount

• 1. If a bank customer gets hurt while inside the bank, the customer can sue the bank and their FDIC insurance will cover the costs

What does it mean to "pay yourself first"?

• On payday, take some money out to reward yourself with some fun spending

• 1. Save money when you are young so you can spend more money when you are older

• 1. Any time you get paid, set aside some portion to save before you do any spending

• 1. Spend money on yourself first, then your immediate family, then friends or other relatives

 What kind of card deducts money directly from a consumer's

checking account when it is used

• Debit Card

• Credit Card

5. Ro's school offers an overnight trip to Washington DC for all 9th grade US history students. Even though the trip is 20 months in the future, she knows she wants to attend and that she should start saving now. If the trip costs $500 total, how much does she need to save per month to have enough?

• 1. $20 per month

• 1. $25 per month

• 1. $480 per month

• 1. $10,000 per month

3. TJ is in 7th grade right now and cuts grass for neighbors to earn money. He wants to set one short-term savings goal and one long-term savings goal. Which answer best matches those goals?

• 1. Short-term = a pack of gum // long-term = 3 packs of gum

• 1. Short-term = a car // long-term = a nicer car

• 1. Short-term = expensive new sneakers // long-term = a car

• 1. Short-term = birthday present for his mom // long-term = a trip to the movies

What is a deposit account held at a financial institution

that allows withdrawals and deposits.  

• Debit account

• Checkings account

• Savings account

• A loan

Money paid regularly at a particular rate for the use of money lent, or for delaying the repayment of a debt

• Interest

• Loan

• Mortgage

• Credit

Investment are for the ________ term years into the future.

• Long

• Short

Which one is not a reason to save?

• Emergency fund

• In order to buy something in the future

• None of the above