WorksheetsSavings Unit Test Review 2020
Total questions: 50
Worksheet time: 25mins
Almost every bank account features online bill pay, a free service that allows you to automatically send checks each month to your less modern service providers (like a sketchy landlord).
True
False
Which of the following is true about checking accounts?
they have no limits on withdrawals
they can be used to pay bills online
they come with checks and a debt card
they make more interest than savings accounts
In order to set up direct deposit what two things will you need for your employer?
account number
amount of deposit
routing number
tax identification number
Which suggestion below utilizes the best strategy for creating your online passwords?
create passwords that are easy to remember, such as your name or your pets name
the best passwords contain only numbers
as long as the password is at least 4 characters it will be safe
use different passwords for each financial account
Which of the following represents a convenient feature of being paid via direct deposit?
Your paycheck will already be in your account on payday, rather than needing to travel to the bank, deposit the check, and wait for it to clear
People paid via direct deposit usually make more money than those who receive a paper check
When you have direct deposit, the tax money usually taken out of your account to pay for paper check printing remains in your paycheck, so you take home more pay
Direct deposit takes cash payments, such as the tips a waiter receives, and turns them into an electronic source of money
When using mobile banking, which of these is NOT a smart tip to keep your account safe?
Make sure your phone is password protected
Only use the official website or app associated with your bank
Choose clever and secure usernames and passwords, and keep them secret
Use easy-to-remember numbers for your online PINs, such as your Social Security number, account number, or birthday
Which of the following would not be a recommended tip for getting the most out of your online checking account?
setting up direct deposit
signing up for mobile and online banking
finding a bank that has minimum balance fees
taking advantage of the debit card features
Which of the following statements is an advantage of online banking?
Using online banking, you can request transfers, pay bills, and automate your savings without visiting the bank branch
Once you set up online banking, your bank will waive overdraft, ATM, and monthly fees
Online banking is the only way you can make online purchases
If you set up online banking, your bank will also file your taxes for you automatically
Which of the following statements is true of online and mobile banking?
Online and mobile banking are pretty unsafe due to hacking
Online banking describes the use of the internet to conduct banking transactions, while mobile banking utilizes a portable device
Online banking describes the use of the internet to conduct banking transactions, while mobile banking utilizes a portable device
Online and mobile banking both describe the use of your ATM card to make purchases and other transactions on the go
With online/mobile banking, the need for person to person contact is slowly going away?
False
True
Which of the following might not work when you are fighting the urge to impulse shop?
Know what it is you really want
making the purchase and then deciding to return it later
Try not to be affected by sales
ask friends or family if you should actually make the purchase
What causes people to live paycheck to paycheck?
people do not focus on budgeting
people are more concerned with credit ratings and scores
people buy on impulse
people by cheaper generic products instead of name brand products
Which of the following is a good reason to start saving for retirement in your early 20s?
Banks typically offer young people higher interest rates, so you'll earn more interest
You'll benefit substantially from compounding interest over all those years
You might have student loan debt to pay off as well
Banks typically offer young people lower interest rates, so you'll pay less in interest
Which of the following statements is TRUE?
Most students that start saving as a high school freshman will likely still have to borrow money in order to pay all of their college tuition.
Starting saving as a high school freshman will help you get into the school of your choice.
Starting saving as a high school freshman will prevent you from receiving financial aid in the future.
Most students that start saving as a high school freshman will likely have enough saved by graduation in order to pay all of their college tuition.
According to experts, your emergency fund should include enough money to cover your expenses for…
3 to 6 days
3 to 6 weeks
3 to 6 months
3 to 6 years
Which of the following is an example of "Keeping up with the Joneses?"
Applying to the top colleges, to see if you'll get accepted to any of them
Buying a new car, instead of a used vehicle, so that friends and neighbors won't think you're poor
Saving for retirement as soon as you graduate college, to take advantage of compounding interest
Buying your mother a gift because you want her to know that you appreciate her
According to studies on savings and happiness, higher rates of savings equate to what?
less financial stability
greater happiness
paying more taxes and being unhappy
less cash reserves to pay for unexpected financial problems
Why is it dangerous to live paycheck-to-paycheck?
You will never be able to afford nice things
Low-income people often live paycheck-to-paycheck
If your pay increases, you will have to redo your entire budget
If you lose your job you will have no way to pay bills
Living paycheck to paycheck can be without having money left over can be attributed to what factor below?
buying cheaper generic products instead of name brand products
using coupons and shopping with a list
choosing to spend and not save
an over emphasis on budgeting
Finish the following sentence. Research has shown that the more money you…
Spend, the sadder you feel
Spend, the happier you feel
Save, the sadder you feel
Save, the happier you feel
Why is it important to know the timeframe for your goals?
you need to know how fast you need to save money to reach your goal
it can create difficulty controlling how much interest is received when trying to reach the goal
so you can open a savings account for each goal
to avoid unnecessary charges to any accounts associated with your goals
Which of the following would not be a way that you can save money every day?
use coupons and sales to ensure you get the maximum benefit
spend less on the things that are not important to you
eat out frequently but use the dollar menu
make a shopping list
Which of the following is an advantage to setting up a direct deposit for your savings account?
Direct deposit is especially good for people who receive an hourly salary, because it transfers the same amount of money every time
You don't have to worry about remembering to transfer money into your savings account on a regular basis
Direct deposit automatically serves as overdraft protection for your checking account
You won’t have to worry about making sure that any of your bills are paid on time
Paying yourself first is best described by what statement below?
Paying all your expenses, investing for retirement, and having an emergency fund
Paying your fixed expenses first, then saving for those emergency expenses and finally retirement
Putting all of your income into a savings account so you can have money when you retire or have an emergency
Putting a portion of your income into a savings account so you can have money when you retire or have an emergency
Which statement is true?
Today’s inflation rates for savings accounts are often lower than the rate of inflation itself
Today’s inflation rates for savings accounts often outpace the rate of inflation itself
Today’s inflation rates for checking accounts are often better than savings accounts
Today’s inflation rates for checking accounts are often greater than the rate of inflation
Choose the option that best completes this sentence: To make sure your savings do not lose value over time, you want to make sure that the rate of return you are receiving is…
Higher than 2%
Lower than 2%
Higher than the rate of inflation
Lower than rate of inflation
Which word completes the statement using the Rule of 72 to easily and quickly determine how long it will
take for your money to_____________?
double
triple
quadruple
grow
Your friend Beth just got a new job and has a goal to save for a new smartphone. What information does she need to know about the smartphone in order to make a plan for her goal and meet it?
The speed of the data plan
The service provide your select
The price of the smartphone
The number of text messages she’ll be able to send
Your younger brother just heard about the 50-20-30 savings rule of thumb and asks you what it is. What do you tell him?
50% of your income should go towards living essentials like rent, utilities, and groceries; 20% should go towards flexible spending; 30% should go towards paying off debt, savings, and investments
50% of your income should go towards living essentials like rent, utilities, and groceries; 20% should go towards paying off debt, savings, and investments; 30% should go towards flexible spending
50% of your income should go towards paying off debt, savings, and investments; 20% should go towards flexible spending; 30% should go towards living essentials like rent, utilities, and groceries
50% of your income should go towards living essentials like rent, utilities, and groceries; 20% should go towards paying off debt, savings, and investments; 30% should go towards flexible spending
Today's young people are saving less. Which statement is TRUE and provides one possible reason why?
You must be at least 21 years old to open a savings account
Young people have more student debt
Young people with student debt are unable to open savings accounts
Interest rates on savings accounts are currently very low, so savings are not increasing quickly
Investing can best be described as what?
the amount of income you tuck away for a rainy day or near-term goals
money deposited in your regular savings account
buying an asset that you believe will generate a return over time, so that your money will grow
selling your assets so that you have cash on hand to pay your bills
Which piece of advice would a retiree give to a young high schooler taking a personal finance class?
saving early does not help you in retirement
participate in your 4019(k), IRA, and do not worry about compounding interest
save early to earn more compounding interest
savings accounts are the best place to secure your money
What three words can be an effective mantra to encourage personal savings?
Do Not Save
Save Later On
Just Spend It
Pay Yourself First
Which of the following statements is true?
set aside a part of your paycheck first and then budget around what is left
set aside enough money to pay all your needs and wants then budget with that is left
pay variable expenses first then budget around what is left
pay fixed expenses first, then variable expenses, then budget with what is left
Which of the following is an investment?
Money deposited into a savings or checking account
Money deposited into a 401(k) account
Money you are planning to spend on a new car
Money you are planning to spend on a trip
How much of your paycheck should you save according to experts?
20%
5%
45%
80%
Investing is done for the long-term, is risker, but can grow fast and may outpace inflation?
True
False
What is one good strategy for saving money?
Set aside part of each paycheck to save first, and then build your budget around that
Save as much as possible, even if it means you can’t afford to pay your bills
Focus on buying your dream home
Put as much money into your 410(k) as possible
Why is investing a better option than saving when it comes to planning for retirement?
Investing usually has lower interest rates, so it offers a better deal
Investing is guaranteed to produce the large sum of money needed for a happy retirement
Investing begins as soon as you open a bank account, so you can start early in life
The stock market historically has returns higher than the rate of inflation, so your money can actually grow
Saving is done for the long-term and usually earns substantial interest?
True
False
What does IRA stand for?
Individual Retirement Account
Impressive Retirement Account
Individual Refund Account
Impressive Refund Account
Which of the following is not considered an important part of saving?
start saving early
get a credit card with low interest
create an emergency fund
invest in a retirement savings account
Two of the most important rules to using credit cards?
always ask your parents before spending on a credit card and only use coupons
do not worry about paying your balance or be concerned with spending
always pay your balance and watch how you spend
do not worry about interest amounts or worry about making monthly payments
Which of the following does NOT describe some things that a budget includes?
all sources of annual income and all variable expenses
all sources of monthly income and all fixed expenses
all sources of weekly income and all fixed expenses
all sources of income, fixed expenses, as well as variable expenses
Which statement best defines financial literacy?
The ability to understand how you can lose money thru credit cards
The ability to understand college, loan, and car applications
The ability to understand finance, spending plans, credit management, and savings
The ability to understand how high school and college graduation impact your financial future
Provides insurance to those you support in the event something catastrophic happens to you.
Health
Automobile
Disability
Renters
Life
Provides insurance for your vehicle, with minimum requirement for most states.
health
automobile
disability
renters
life
Provides insurance in the event you have a medical emergency.
health
automobile
disability
life
renters
Provides insurance in the event you have to stop working.
health
automobile
disability
renters
life
Provides insurance for your personal property.
health
automobile
disability
renters
life
