WorksheetsSavings Unit 2
Total questions: 31
Worksheet time: 16mins
Which of the following represents the 50/20/30 Rule for budgeting?
20% Needs, 50% Wants, 30% Savings
50% Savings, 30% Needs, 20% Wants
30% Wants, 50% Savings, 20% Needs
50% Needs, 30% Wants, 20% Savings
Things you would like to have but are not necessary.
Bills
Savings
Wants
Needs
If you get money each week from your parents, possibly for doing chores, this is called what?
An Allowance
Wants
Savings
Net Pay
Rent, electricity, gas, phone, groceries are examples of costs which are called what?
Income
Expenses
Taxes
Wants
The total amount of money you receive in a paycheck before anything is taken out is called what?
Net Pay/Income
Savings
Income Taxes
Gross Pay/Income
A physical or electronic document that provides details about money earned on a job and deductions made.
Budget
Allowance
Pay Stub
Income
Money that is deducted from a person's income or a company's profits for federal or state purposes.
Income Taxes
Expenses
Bills
Net Pay
Money that is set aside for future short or long term goals or emergencies is called what?
Allowance
Needs
Savings
Wants
A debt you owe for goods (ex. food, games or clothes) and services (ex. hair cut).
Bills
Needs
Income Taxes
Wants
A plan for spending and saving income during a set period of time.
401k Retirement Account
Net pay
Budget
Social Security
Which is a saving strategy where you put a fixed amount of money into a savings account immediately after receiving your paycheck instead of seeing what is left after paying for needs and wants?
50/20/30 Rule
Pay Yourself First
Medicaid
Income Taxes
Sam saved $2,000 from his summer job cleaning pools. Which of these savings vehicles would work best for him if he doesn't need access to the money for a a few years AND wants to earn the highest interest rate?
Regular savings account
Money Market account
Checking account
Certificate of Deposit
When a bank says their savings account earns 1% interest, that typically means you will earn 1% interest over what period of time (Note: this is not referring to the compounding frequency or frequency of interest payment)?
Daily
Monthly
Quarterly
Annually
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 into 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 represents possible goals from short-term to long-term? Save for…
Retirement, a house down payment, college tuition
A new cell phone, college tuition, a house down payment
A new cell phone, dinner with friends this weekend, a new bike
Retirement, college tuition, a vacation
Which represents the best time to start saving for your retirement?
As soon as you graduate and have your first full-time job
Right after you pay off your student loans
Once you are debt-free, including paying off all credit cards, auto loans, and your mortgage
At age 45, so you have exactly 20 years until retirement
Experts recommend that you accumulate enough to cover 3 to 6 __________________ of expenses in your emergency fund.
Days
Weeks
Months
Years
Your sister Annhas her paycheck direct deposited into her checking and savings accounts each pay period. She asks you how she should split her paycheck between the two accounts. What is the best advice you could offer her to encourage her savings habit?
Direct deposit the full amount of the check each month into her checking account and then decide later how much to put into savings
Add at least 95% of her paycheck to her checking account and 5% to her savings account because you know that saving is hard for her
Add at least 10-20% of her paycheck to her savings account and the remaining 80-90% to her checking account
Do not have her paycheck direct deposited since it is NOT a secure way to transfer money
What is a 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
At what rate does your $ need to grow in order to double in 18 years?
2%
4%
6%
8%
What might you need to open a savings account? (hint: choose 2 correct answers)
Minimum opening deposit
Your previous year's tax returns (or your parents')
The routing number to a checking account
Identification
