What is a good strategy to help you save?

Pay yourself first - set aside money for savings each month

How does the 50-20-30 rule distribute your income?

50% expenses, 20% saving, 30% flexible spending

What might you need to open a savings account?

Identification, Minimum opening deposit

Which of the following is FALSE about opening up a Roth IRA?

You need to put at least $1,000 in it every year, Compounding occurs at a slower rate in a Roth IRA

How is compound interest different than simple interest?

It is simple interest + interest earned on that interest

Which is TRUE about Certificates of Deposit (CDs)?

The bank can loan out the $ in your CD, The bank pays you interest in return

Which is TRUE about online saving accounts?

Usually have higher interest rates than non-online accounts, Usually have lower costs compared to brick-and-mortar banks

What is a benefit of opening up a Health Savings Account (HSA)?

You can use pre-tax $ to pay for out-of-pocket costs

How does inflation impact the money in your savings account?

The purchasing power of your money decreases over time

Saving accounts differ from checking accounts in that...

Money in a saving account can be used to fund a bank's loans

Which of the following is FALSE about saving and investing?

Both saving and investing generally have low returns, Saving has more risk; investing has less risk

What is a 529 account?

A tax exempt fund that lets your savings grow for school

studbud

NGPF - Saving

20 termsStudBud Administration2,697 plays

A #quiz targeted towards #highschool students to check for understanding on how #saving accounts work, why we #save, and how we save. #personalfinance #financial literacy Refer to ngpf.org/curriculum/saving/ for more great FREE, Jump$tart Standards aligned lessons.

Flashcards20 cardsFPractice quizPHost liveL

Questions 20

Answers

1
About how much should you save in an emergency fund?
9-12 months of living expenses
6-9 months of living expenses
3-6 months of living expenses
1-3 months of living expenses
2
At what rate does your $ need to grow at to double in 18 months?
8%
6%
2%
4%
3
What is a good strategy to help you save?
Tap into your savings regularly to purchase small items
Pay yourself first - set aside money for savings each month
1st, spend money on all expenses; put the rest into saving
Keep your spending and saving money together in 1 account
4
How does the 50-20-30 rule distribute your income?
50% expenses, 20% flexible spending, 30% saving
50% saving, 20% flexible spending, 30% expenses
50% flexible spending, 20% saving, 30% expenses
50% expenses, 20% saving, 30% flexible spending
5
Which is NOT a typical goal for a savings account?
To save for a new car
To create an emergency fund
To pay for higher education
To buy groceries for this week
6
What might you need to open a savings account?
The routing number to a checking account
Your previous year's tax returns (or your parents')
Identification
Minimum opening deposit
7
Which of the following is FALSE about opening up a Roth IRA?
You need to put at least $1,000 in it every year
A person of any age with earned income can open one
It can help teens start saving for retirement early
Compounding occurs at a slower rate in a Roth IRA
8
How is compound interest different than simple interest?
It is simple interest - interest earned on that interest
It is simple interest + interest earned on that interest
It is double the simple interest earned on an investment
It's not different; they are one and the same
9
Which is TRUE about Certificates of Deposit (CDs)?
You agree to keep $ in a CD for an undetermined time period
You pay the bank some interest to keep $ in the CD
The bank can loan out the $ in your CD
The bank pays you interest in return
10
Which is TRUE about online saving accounts?
You can withdraw money an unlimited # of times
Usually have higher interest rates than non-online accounts
Usually have lower costs compared to brick-and-mortar banks
Online accounts are not FDIC insured
11
How is wealth defined?
Debts - Assets
All assets, including money in the bank + retirement
How much money you have in your Checking and Saving accounts
Assets - Debts
12
True or False: You need a checking account to open a savings account.
True
False
13
What is a benefit of opening up a Health Savings Account (HSA)?
You earn interest, but it's taxed
The funds expire only every 5 years
You can use the funds for retirement once you're 75
You can use pre-tax $ to pay for out-of-pocket costs
14
How does inflation impact the money in your savings account?
Inflation increases the value of the money in your account
Inflation decreases only the $ you earn in interest
The purchasing power of your money decreases over time
Inflation has no impact on $ in your savings account.
15
Saving accounts differ from checking accounts in that...
Money in a saving account can be used to fund a bank's loans
Checking accounts offer higher interest rates
Saving accounts let you withdraw $ an unlimited # of times
Saving accounts come with more fees than checking accounts
16
Which of the following is FALSE about saving and investing?
Saving doesn't outpace inflation; investing usually does
Both saving and investing generally have low returns
Saving is for short-term; investing is for the longer-term
Saving has more risk; investing has less risk
17
What is a 529 account?
A special type of saving account for minors
A type of retirement account for teens & younger adults
A special type of saving account for college students only
A tax exempt fund that lets your savings grow for school
18
Assuming a rate of growth of 8%, in how many years will your $ double?
9 years
12 years
3 years
6 years
19
What is a general rule of thumb on how much you should save?
20% of your income
10% of your income
30% of your income
5% of your income
20
What are some reasons for why so many Americans live paycheck-to-paycheck?
Many people impulse shop
Many people spend within their budget
Many people are paying themselves first and then spending
Many people only buy what they NEED, not what they WANT

NGPF - Saving Flashcards | StudBud

NGPF - Saving

20 termsStudBud Administration2,697 plays

Flashcards20 cardsFPractice quizPHost liveL

Questions 20

Answers

1
About how much should you save in an emergency fund?
9-12 months of living expenses
6-9 months of living expenses
3-6 months of living expenses
1-3 months of living expenses
2
At what rate does your $ need to grow at to double in 18 months?
8%
6%
2%
4%
3
What is a good strategy to help you save?
Tap into your savings regularly to purchase small items
Pay yourself first - set aside money for savings each month
1st, spend money on all expenses; put the rest into saving
Keep your spending and saving money together in 1 account
4
How does the 50-20-30 rule distribute your income?
50% expenses, 20% flexible spending, 30% saving
50% saving, 20% flexible spending, 30% expenses
50% flexible spending, 20% saving, 30% expenses
50% expenses, 20% saving, 30% flexible spending
5
Which is NOT a typical goal for a savings account?
To save for a new car
To create an emergency fund
To pay for higher education
To buy groceries for this week
6
What might you need to open a savings account?
The routing number to a checking account
Your previous year's tax returns (or your parents')
Identification
Minimum opening deposit
7
Which of the following is FALSE about opening up a Roth IRA?
You need to put at least $1,000 in it every year
A person of any age with earned income can open one
It can help teens start saving for retirement early
Compounding occurs at a slower rate in a Roth IRA
8
How is compound interest different than simple interest?
It is simple interest - interest earned on that interest
It is simple interest + interest earned on that interest
It is double the simple interest earned on an investment
It's not different; they are one and the same
9
Which is TRUE about Certificates of Deposit (CDs)?
You agree to keep $ in a CD for an undetermined time period
You pay the bank some interest to keep $ in the CD
The bank can loan out the $ in your CD
The bank pays you interest in return
10
Which is TRUE about online saving accounts?
You can withdraw money an unlimited # of times
Usually have higher interest rates than non-online accounts
Usually have lower costs compared to brick-and-mortar banks
Online accounts are not FDIC insured
11
How is wealth defined?
Debts - Assets
All assets, including money in the bank + retirement
How much money you have in your Checking and Saving accounts
Assets - Debts
12
True or False: You need a checking account to open a savings account.
True
False
13
What is a benefit of opening up a Health Savings Account (HSA)?
You earn interest, but it's taxed
The funds expire only every 5 years
You can use the funds for retirement once you're 75
You can use pre-tax $ to pay for out-of-pocket costs
14
How does inflation impact the money in your savings account?
Inflation increases the value of the money in your account
Inflation decreases only the $ you earn in interest
The purchasing power of your money decreases over time
Inflation has no impact on $ in your savings account.
15
Saving accounts differ from checking accounts in that...
Money in a saving account can be used to fund a bank's loans
Checking accounts offer higher interest rates
Saving accounts let you withdraw $ an unlimited # of times
Saving accounts come with more fees than checking accounts
16
Which of the following is FALSE about saving and investing?
Saving doesn't outpace inflation; investing usually does
Both saving and investing generally have low returns
Saving is for short-term; investing is for the longer-term
Saving has more risk; investing has less risk
17
What is a 529 account?
A special type of saving account for minors
A type of retirement account for teens & younger adults
A special type of saving account for college students only
A tax exempt fund that lets your savings grow for school
18
Assuming a rate of growth of 8%, in how many years will your $ double?
9 years
12 years
3 years
6 years
19
What is a general rule of thumb on how much you should save?
20% of your income
10% of your income
30% of your income
5% of your income
20
What are some reasons for why so many Americans live paycheck-to-paycheck?
Many people impulse shop
Many people spend within their budget
Many people are paying themselves first and then spending
Many people only buy what they NEED, not what they WANT