WorksheetsSavings Unit: Study Guide
Total questions: 25
Worksheet time: 13mins
Name
Class
Date
1.
1. Juan saved $1,000 from his summer job cleaning pools. Which of these account types would work best for him if he doesn't need access to the money for a number of years AND wants to earn the highest interest rate?
a)
Checking account
b)
Certificate of Deposit
2.
2. Which of the following is an effective strategy for personal saving?
a)
Save a certain percentage of each paycheck and deposit it directly into a savings account
b)
Cover all of your wants and needs and save whatever is left over
3.
3. Joelle wants to have an emergency fund. Her monthly gross pay is $4,000. If she plans to save 10% of her gross pay each month, how much money will she save each month?
a)
$40
b)
$400
4.
4. Which of the following statement is true about bank accounts?
a)
Many banks pay interest on the money you deposit into your savings account
b)
Historically, savings accounts earn higher returns than investments in the stock market
5.
5. All of the following are true about prepaid cards EXCEPT…
a)
Prepaid cards are a great way to build credit
b)
Prepaid cards are usually accepted anywhere that debit and credit cards are accepted
6.
6. You are developing a savings plan and using short-, medium-, and long-term goals to motivate you. Which represents possible goals from short-term to long-term? Save for…
a)
A new cell phone, college tuition, a house down payment
b)
Retirement, college tuition, a vacation
7.
7. Fill in the blanks with the correct responses. If you follow the 50-30-20 rule of budgeting, you'll be putting 50% of your monthly income toward _______________, 30% of your monthly income toward _____________, and 20% of your monthly income toward ______________.
a)
Needs, wants, savings
b)
Savings, needs, wants
8.
8. Which represents the BEST time to start saving for your retirement?
a)
As soon as you have your first full-time job
b)
At age 45, so you have exactly 20 years until retirement
9.
9. Which of the following statements is TRUE?
a)
The majority of Americans have an adequate emergency fund
b)
The majority of Americans do NOT have an adequate emergency fund or sufficient amounts of money saved for retirement
10.
10. Experts recommend that you accumulate enough to cover 3 to 6 __________________ of expenses in your emergency fund.
a)
Weeks
b)
Months
11.
11. Which of these is a reason someone might choose to open an online savings account rather than a savings account at a traditional bank?
a)
Online savings accounts typically pay higher interest rates on deposits
b)
Online savings accounts are created specifically for people under age 25
12.
12. Which statement best describes a savings account?
a)
This account pays you interest on money you have put away for later to help your money grow
b)
This account is automatically debited when you use a debit card
13.
13. You overhear your Aunt Tina tell your mom that she, her husband, and their kids are "living paycheck to paycheck." What does Aunt Tina mean by that?
a)
Aunt Tina and her family don't have any money saved, and their paychecks are just barely covering monthly expenses
b)
Aunt Tina only receives paper paychecks instead of direct deposit
14.
14. You are at the checkout counter at the local supermarket and use your debit card to pay for your groceries. Where does the money for this purchase come from?
a)
It is deducted directly from your checking account
b)
It is deducted directly from your savings account
15.
15. Fill in the blanks: If inflation is _____________ your savings account interest rate then you will be ______________ purchasing power.
a)
Higher than, losing
b)
Lower than, losing
16.
16. Jocelyn gets a text alert from the bank that her account balance has dropped below $100 after a series of $20 ATM withdrawals. She has not used her ATM in over a week and wonders what she should do. What would you recommend?
a)
Wait a week as it is fairly common for the bank to catch mistakes like this
b)
Contact her bank immediately as it appears that her account may have been hacked
17.
17. Which of the following transactions will REDUCE your checking account balance immediately?
a)
Using your debit card to pay for groceries at the supermarket
b)
Using your credit card to pay for your school books
18.
18. Which of the following statements is an advantage of online banking?
a)
Using online banking allows you to earn a higher interest rate
b)
Using online banking, you can request transfers, pay bills and automate your savings without visiting the bank branch
19.
19. FDIC Insurance is...
a)
Optional coverage consumers can purchase so that their bank deposits remain safe
b)
Protection for bank customers’ deposits up to $250,000, guaranteeing their money is still available if the bank goes out of business
20.
20. When signing up for a new checking account, you answer "Yes" to receive overdraft protection. On this day, you have $10 in your account and go out and use your debit card to buy lunch for $12, a movie ticket for $12 and dinner for $15. What is likely to be the outcome resulting from these transactions?
a)
Your account will be closed
b)
You will likely be charged an overdraft fee for one or more of the transactions and also will need to repay the bank for the amount overdrawn
21.
21. How often do customers typically receive a bank statement for their checking account?
a)
Weekly
b)
Monthly
22.
22. When signing up for a new checking account you answer "No" and opt out of overdraft protection. On this day, you have $10 in your account and go out and use your debit card to buy lunch for $12, a movie ticket for $12 and dinner for $15. What is likely to be the outcome resulting from these transactions?
a)
You will likely be charged an overdraft fee for one or more of the transactions and also will need to repay the bank for the amount overdrawn
b)
Since you declined overdraft protection, the bank will not allow you to overdraw your account so your debit card will be denied
23.
23. A person-to-person payment app could be used in each of the following scenarios EXCEPT...
a)
Tina pays her neighbor $200 for breaking his window with a softball
b)
Mia pays Cheesy Pizza Co. for a pizza she orders on their website
24.
24. Fill in the blanks: Direct deposit typically refers to your ______ sending your ______ electronically to your bank account.
a)
employer, paycheck
b)
parents, allowance
25.
25. All of the following are downsides of being unbanked EXCEPT:
a)
Lack of access to credit
b)
Lack of fees associated with banks
100 %
