WorksheetsPF EOU Savings
Total questions: 15
Worksheet time: 8mins
One reason people should save money is to create an "emergency fund." Which of these is an example of an unexpected expense you might use an emergency fund to pay for?
6 months of cable TV
A new cell phone if yours is stolen on the bus
Valentine's Day gifts for friends and family
Your back-to-school clothes and supplies
What does it mean to "pay yourself first"?
On payday, take some money out to reward yourself with some fun spending
Save money when you are young so you can spend more money when you are older
Any time you get paid, set aside some portion to save before you do any spending
Spend money on yourself first, then your immediate family, then friends or other relatives
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?
Short-term = a pack of gum // long-term = 3 packs of gum
Short-term = a car // long-term = a nicer car
Short-term = expensive new sneakers // long-term = a car
Short-term = birthday present for his mom // long-term = a trip to the movies
TJ typically cuts 5 lawns per month and earns $20 per lawn. He spends money throughout the month on things like snacks, tickets to high school football and basketball games, and new video games. Somehow, he ends every month with only a few dollars left. Which behavior change is MOST likely to help TJ save more money?
Spend less time cutting grass and more time saving money
Ask his parents for an allowance and try to save that money instead
Before he spends, set aside $5 to save out of every $20 payment
Spend money on a better lawn mower so he can cut more grass
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?
$20 per month
$25 per month
$480 per month
$10,000 per month
Diamond makes $200 per month by babysitting her neighbor's son after school. She wants to buy her dad something really special for Father's Day next year, and the holiday is 10 months away. Which strategy will work best to make sure she has enough saved by then?
Figure out how much she'd like to spend, and then divide the cost by 10 so she knows how much to save each month
Save all $200 every month until Father's Day without spending anything on herself
Don't worry about saving until closer to Father's Day -- she'll figure something out
Spend her money freely, but any time she has spare cash at the end of a month, put it in savings
Which statement best describes what it means if your bank is "FDIC insured?"
Bank customers can buy car or health insurance at their bank
If you lose your wallet and the cash inside is missing, your bank will pay to replace it up to a certain amount
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
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 is one BENEFIT of using a savings account instead of a checking account?
Your savings account will charge lower ATM fees than your checking account
Your savings account will earn interest, so the money in your account will grow without you doing anything
Your savings account lets you write checks or pay bills easily, while it's more difficult to use your checking account
Your savings account allows you to use online banking, while checking accounts require you to visit the bank branch
What is one DOWNSIDE of using a savings account instead of a checking account?
Your savings account has high fees attached to it, while your checking account does not
Your savings account has a limit of 6 withdrawals per month, while your checking account does not
Your parents need to help you open a savings account, but you can open a checking account without them
Far fewer banks offer savings accounts, while far more banks offer checking accounts
As a teenager opening a savings account, which two features are MOST important for you to have in your account?
No interest rate and no monthly fees
No interest rate and no minimum balance requirement
No monthly fees and no minimum balance requirement
No monthly fee and no FDIC insurance
When you open your first savings account, you will need to bring each of these things EXCEPT...
An adult if you're under 18
Proof of your mailing address
A letter from your employer
Some form of identification (ID)
Using the credit card statement picture, How many times during this statement period was money withdrawn from this account?
0
1
2
3
Using the credit card statement picture, How much was Roger charged in fees during this statement period?
$0
$0.51
$100.00
1.25%
Cylina's savings account is earning 2% per year. She has a balance of $1000 in the account, and she is planning to leave the money there for 4 years, until she's ready to start college. What equation could she use to determine how much simple interest her account will earn over that time?
Interest = $1000 + 8%
Interest = $1000 x 2%
Interest = $1000 + 2% + 4
Interest = $1000 x 2% x 4
What is the financial benefit of compound interest?
The interest rates banks offer for compound accounts are ALWAYS higher than for simple accounts
When you earn compound interest, you earn interest on both the principal and any interest you've already earned
When earning compound interest, you don't accumulate as many bank fees
When you earn compound interest, you earn interest ONLY on the principal
