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WorksheetsSavings Unit 2 HW 21-22
Total questions: 22
Worksheet time: 1hrs 6mins
How is wealth defined?
How much money you have in your Checking and Saving accounts
Debts - Assets
All assets, including money in the bank + retirement
Assets - Debts
You are 18 years old, opening your first savings account, and are considering three options:
All three have fees competitive with other banks. Which bank is the best option?
Bank A
Bank B
Bank C
All 3 banks are equally good options
When a bank says their savings account earns 1% interest, that typically means you will earn 1% interest over what period of time?
Daily
Monthly
Quarterly (three months)
Annually (a year)
Which of the following statements is TRUE?
The majority of Americans have an adequate emergency fund and sufficient amounts of money
saved for retirement.
b) The majority of Americans do not have an adequate emergency fund or sufficient amounts of money
saved for retirement.
The majority of Americans have an adequate emergency fund but not sufficient amounts of
money saved for retirement.
The majority of Americans do not have an adequate emergency fund but do have sufficient amounts of money saved for retirement.
What is a 529 account?
A type of retirement account for teens & younger adults
A special type of saving account for minors
A tax exempt fund that lets your savings grow for school
A special type of saving account for college students only
Which of the following individuals is the wealthiest?
Maria owns a $15,000 car and owes $45,000 in student loan debt.
Keith owns a $500,000 home and has a $460,000 mortgage.
Elyse owns a $25,000 car that is entirely paid off but has $10,000 in credit card debt.
Karina owns a $50,000 car and has $5000 remaining on her car loan.
How much of your paycheck should you save according to experts?
5%
20%
45%
80%
What would be a good time to spend money from your Emergency Fund?
You lose your job but still have bills to pay
Your friend tells you that you should buy as much Bitcoin as possible
Your favorite artist releases a new album and you just have to buy it
Your friends are going on an expensive trip an you would like to go with them
What is the reason for why so many Americans live paycheck-to-paycheck?
Many people are paying themselves first and then spending
Many people only buy what they NEED, not what they WANT
Many people impulse shop
Many people spend within their budget
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
You are developing a savings plan and using short-, medium- and long-term goals to motivate you. Which of the following might you pick as the most long-term goal?
Saving for retirement
Saving for a down payment on a home
Saving to buy a car
Saving to go on vacation
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 a good reason to start saving for retirement in your early 20s?
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 higher interest rates, so you'll earn more interest
Banks typically offer young people lower interest rates, so you'll pay less in interest
Zola just secured her first job after college, and she's heard that it's important to start investing for her retirement. She can afford to put 5% of her monthly salary toward retirement. What type of account should she choose for this goal?
IRA
CD
MMA
HSA
Which is NOT a typical goal for a savings account?
To create an emergency fund
To pay for higher education
To save for a new car
To buy groceries for this week
How does the 50-20-30 rule distribute your income?
50% expenses, 20% flexible spending, 30% saving
50% expenses, 20% saving, 30% flexible spending
50% flexible spending, 20% saving, 30% expenses
50% saving, 20% flexible spending, 30% expenses
Which of the following statements is TRUE?
The interest rate on your savings account will remain the same as long as you keep the account open.
You can choose the interest rate on your savings account, but only once per year.
The interest rate on your savings account will vary over time and be set by the bank.
The interest rate on your savings account will vary over time and be set by the government.
All of the following are good strategies to develop savings habits EXCEPT...
Start with a small goal and gradually get more ambitious
Take a percentage of your paycheck and deposit it directly into a savings account
Avoid spending money that you don't have and running up credit card debt
Request to be paid in cash so you can save a certain percentage of your money in a shoebox in your room every month
Choose the option that best completes this sentence: Compound interest is interest earned on …
the salary you receive
the rate of inflation
the tax return you receive
the interest you receive
How does inflation impact the money in your savings account?
Inflation decreases only the $ you earn in interest
Inflation increases the value of the money in your account
Inflation has no impact on $ in your savings account.
The purchasing power of your money decreases over time
Which of the following is an effective strategy for personal saving?
Wait until the end of the month and save whatever is left in your checking account
Save a certain percentage of each paycheck and deposit it directly in a savings account
Cover all of your wants and needs and save whatever is left over
Take out a payday loan so you can save before you receive your paycheck
You are developing a savings plan and using short-, medium- and long-term goals to motivate you. Which of the following might you pick as the most long-term goal?
Saving for retirement
Saving for a down payment on a home
Saving to buy a car
Saving to go on vacation
