WorksheetsSavings Test Review
Total questions: 15
Worksheet time: 8mins
How much are the interest rate and fees?
Is this your family bank?
Do your teachers use this bank?
Does your favorite singer use this bank?
2) "Pay yourself first"? means...
Pay your credit card bill before your cell phone bill.
.Any time you get paid, set aside some portion to save before you do any spending
Buy what you want and save the rest
Loan money to friends and family, then save 20% of the rest.
Saving for dinner and a movie
Saving for a new backpack for school
Saving for a new pair of crocs
Saving for a car in five years
4) Arnold typically walks 10 dogs per month and earns $20 per walk. 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 Arnold save more money?
Spend money on a better lawn mower so he can cut more grass
Before he spends, set aside $5 to save out of every $20 payment
5) Paul's school offers an overnight trip to Disney World for all 7th grade band students. Even though the trip is 10 months in the future, he knows he wants to attend and that he should start saving now. If the trip costs $600 total, how much does he need to save per month to have enough?
$60 per month
$600 per month
6) Doris makes $300 per month by babysitting her neighbor's kids after school. She wants to buy her dad something really special for his birthday, which is 10 months away. Which strategy will work best to make sure she has enough saved by then?
Wait until the month of her dad's birthday and worry about it then.
Save $300 every month without spending anything on herself
Apply for a credit card so she can charge the gift now and pay in 10 months.
Figure out how much the gift will cost and divide that number by 10 and save that amount each month.
7) Why do you want to make sure your bank is FDIC insured?
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
Buying health insurance through the bank is the best way to go.
If the bank goes out of business you only have to pay $50.
If your house catches on fire, the bank pays for you to stay in a hotel.
Mr. Whitehair
The rate of interest applied
The original amount of money deposited
The total amount in the account after interest
9) What is a DISADVANTAGE of using a savings account instead of a checking account?
Savings accounts pay interest.
Banks required that you open a credit card account if you want a savings account.
Savings accounts have high fees and checking accounts have NO fees
Your savings account has a limit of 6 withdrawals per month, while your checking account does not
E=MC squared
Interest = Principal - Rate - Time
Interest = Principal x Rate x Time
Interest = Principal x Rate - Time
11) If you deposit $2,000 in a savings account with a simple interest rate of 6% per year, how much interest will you earn in 3 years?
$60
$180
$300
$360
12) How many times during this statement period was money deposited into this account?
2
4
6
8
13) How much did Mary Jane withdraw from the ATM during this statement period?
$100.00
5%
$200
14) Carol's savings account is earning 3% per year. She has a balance of $1000 in the account, and she is planning to leave the money there for 5 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 x 3% x 5
Interest = $1000 x .3% x 5
Interest = $1000 + 3% + 5
Interest = $1000 / 2% / 5
15) Why is compound interest better than simple interest when saving money?
Actually, simple interest is better because you earn more interest.
When you earn compound interest, the bank doesn't charge any bank fees
When earning compound interest, your credit score increases
When you earn compound interest, you earn interest on both the principal and any interest you've already earned
