WorksheetsMath 8 Savings Assessment
Total questions: 11
Worksheet time: 6mins
I can make smart savings decisions by planning for future expenses, understanding how interest works, and choosing the right type of bank account.
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
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
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)
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 typically cuts 10 lawns per month and earns $10 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 $2 from every $10 payement
Spend money on a better lawn mower so he can cut more grass
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
One benefit of using a savings account instead of a checking account is:
It usually earns more interest.
It allows unlimited withdrawals.
It offers more check-writing privileges.
It charges higher fees.
One downside of using a savings account instead of a checking account is:
Lower interest rates
Limited number of withdrawals
Higher fees for deposits
No access to online banking
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
If a savings account offers 2.5% compound interest annually, and you deposit $1000, how much interest would you earn after 2 years, assuming annual compounding and no additional deposits? (Use: A=P(1+r)t ).
$50.63
$45.00
$80.35
$90.00
