NGPF Savings

Putting money into a savings account before paying expenses.

• pay yourself first

• budgeting

• banking

• reconciliation

Which is true about an online savings account?

• It is not FDIC insured

• There is no physical bank to do business at

• It has no advantages over traditional savings accounts

• It earns less interest than at a brick and mortar bank

What is interest?

• The rate at which the money grows

• The amount of money put into an account

• An amount of money paid for the use of money

• An increase in the value of money

How does the 50-20-30 rule distribute your income?

• 50% needs, 20% savings, 30% wants

• 50% savings, 20% needs, 30% wants

• 50% needs, 20% wants, 30% savings

• 50% wants, 20% savings, 30% needs

Interest earned on both the principal amount and any interest already earned.

• simple interest

• compound interest

• double interest

• interest free

Money set aside for unanticipated expenses or loss of income

• savings account

• spending log

• budget

• emergency fund

How much do financial experts recommend you have in an emergency fund?

• Enough to cover 3-6 months worth of expenses

• Enough to cover 3-6 years worth of expenses

• At least 10% to 20% of your income

• At least $10,000

Which of the following is an example of delayed gratification as it pertains to saving?

• Using your credit card to afford a fancy vacation now, but not feeling happy about it until you pay off the entire debt in 5 years

• Not buying a muffin or breakfast sandwich every morning during the workweek so you can buy a really nice breakfast for your family once every few weeks

• Postponing your mall shopping trip to Sunday, rather than Saturday, so there are fewer crowds

• Using your credit card so that you can get points on your purchases

What type of account is used for saving for retirement?

• HSA

• IRA

• CD

• MMA

What is the Rule of 72?

• The fact that there is normally a greater benefit to receiving a sum of money now rather than later

• How to calculate the amount of money in the future given current APRs

• The length of time to keep your money in a savings account

• How long it takes for your money to double in value