The bank lends out the money at a higher interest rate than what they are paying you

The bank lends out the money at a lower interest rate than what they are paying you

The money sits at the bank until you are ready to withdraw or use it

The money is sent to the Federal Reserve, where it sits until you’re ready to withdraw or use it

Savings accounts are not very safe, and you could lose all your money

Savings accounts earn very little interest, and your growth may not keep pace with inflation

Savings accounts are very costly to maintain, and the fees will reduce your savings in the long-term

Savings accounts are traditionally used for bill pay, and you will likely change accounts before your retirement bills are due

Credit unions are owned by shareholders and banks are owned by customers

Credit unions are structured to maximize profits and banks are non-profit entities serving their members

Credit unions tend to be large organizations and banks are often smaller/more local organizations

Credit unions compete mostly on services relationships and banks try to offer a one-stop-shop for products

They use their entire paycheck to cover monthly expenses and have very little money saved

Their income varies month-to-month and they save a large portion of their biggest paychecks

They use direct deposit, so their paycheck is automatically split between their checking and savings accounts

They have high-paying jobs, so don’t have to worry about how much is in each paycheck

It limits your spending to $50 per month

It recommends that 20% of your budget goes to debt repayment or savings

It recommends that 50% of your budget goes to debt repayment or savings

For every $50 you save, a bank will give you $30 or a credit union will give you $20

Tre should deposit his check as quickly as possible before taxes can be taken out

Tre should set aside part of every paycheck for savings before he does any spending

Tre should spend the money he needs before he lends any to friends or gives to charity

Tre should start his own business rather than being someone else’s employee

2.4 months

4 months

5 months

6 months

1-3 month of expenses

3-6 months of expenses

6-9 months of your salary

1-2 years of expenses

Wages have increased at a slower rate than those costs

Wages have increased at the same rate as those costs

Wages have increased at a faster rate than those costs

Wages have decreased as those costs have increased

529 plans and HSAs are both used to provide income during retirement

529 plans allow you to invest for retirement while HSAs allow you to invest for future health expenses

529 plans can be used for education expenses while HSAs can be used for health expenses

529 plans have tax advantages while HSAs do not

Checking, Savings, CD, Money Market

Money Market, Savings, CD, Checking

Checking, Savings, Money Market, CD

Savings, Money Market, CD, Checking

Have an adequate emergency fund and have enough saved for retirement

Have an adequate emergency fund but do NOT have enough saved for retirement

Do NOT have an adequate emergency fund but have enough saved for retirement

Do NOT have an adequate emergency fund and do NOT have enough saved for retirement

Get a couple of part time jobs to increase income and then also increase your spending

Control impulse spending and break your goal into smaller time frames

Pay all of your bills in cash and then save all your pocket change

Keep your money in a checking account and only spend using your debit card

A retirement investment account with specific tax advantages

A specialized savings account that allows you to save for college

A checking account from which you pay your healthcare bills

A savings account at an online-only bank

There will be no solution

There will be one solution

There will be two solutions

There will be three solutions

Marcos is saving $7 more than Lucas per week

Marcos has saved $300 more than Lucas after 7 weeks

They both saved $300 per week in the 7th week

They both have saved $300 total after 7 weeks

Higher interest rates leading to more savings growth

Lower fees for account maintenance

More frequent access to funds without penalties

Better customer service and support

Paying only the minimum balance each month

Transferring balances to a new card with a lower interest rate

Using a credit card for all purchases to earn rewards

Closing all credit card accounts immediately

It decreases the amount of interest earned over time

It allows interest to be earned on both the initial principal and accumulated interest

It requires a higher initial deposit to start earning interest

It limits the frequency of interest payments to once a year

It automatically increases your savings

It provides real-time updates on your spending habits

It eliminates the need for a bank account

It guarantees a higher credit score

It ensures a guaranteed return on investment

It reduces the risk of significant financial loss

It allows you to avoid paying taxes on gains

It simplifies the investment process

To cover unexpected expenses without going into debt

To invest in high-risk stocks

To pay off all your credit card debt immediately

To ensure you can retire early

A late fee applied to borrowed money.

The promise to repay a debt.

The additional cost to borrowing money.

A measure of monetary strength.

credit card accounts

student loan accounts

checking accounts

regular savings accounts, high-yield savings accounts, money market accounts, certificate of deposit (CD) accounts, and individual retirement accounts (IRAs)

CD

MMA

regular savings account

checking account

1,500

15,000

34,000

68,000