Saving accounts differ from checking accounts in that...

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

How is compound interest different than simple interest?

It is simple interest + interest earned on that interest

How does inflation impact the money in your savings account?

The purchasing power of your money decreases over time

Which is TRUE about Certificates of Deposit (CDs)?

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

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

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

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

What is a good strategy to help you save?

Pay yourself first - set aside money for savings each month

What might you need to open a savings account?

Minimum opening deposit, Identification

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Klein FinLit NGPF Savings Unit

20 termsStudBud Administration433 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.

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Questions 20

Answers

1
True or False: You need a checking account to open a savings account.
True
False
2
Saving accounts differ from checking accounts in that...
Saving accounts let you withdraw $ an unlimited # of times
Money in a saving account can be used to fund a bank's loans
Saving accounts come with more fees than checking accounts
Checking accounts offer higher interest rates
3
Assuming a rate of growth of 8%, in how many years will your $ double?
9 years
12 years
3 years
6 years
4
How is compound interest different than simple interest?
It's not different; they are one and the same
It is double the simple interest earned on an investment
It is simple interest + interest earned on that interest
It is simple interest - interest earned on that interest
5
A type of savings account offered by traditional and online banks that is NOT FDIC insured.
Money Market Fund
Passbook savings
Statement savings
Certificates of Deposit
6
What are some reasons for why so many Americans live paycheck-to-paycheck?
Many people impulse shop
Many people only buy what they NEED, not what they WANT
Many people are paying themselves first and then spending
Many people spend within their budget
7
What is a general rule of thumb on how much you should save?
10% of your income
20% of your income
5% of your income
30% of your income
8
About how much should you save in an emergency fund?
3-6 months of living expenses
1-3 months of living expenses
6-9 months of living expenses
9-12 months of living expenses
9
What type of account is limited to six withdrawals per month with no penalties?
Certificate of Deposit
Savings Account
401k retirement account
Checking account
10
How does inflation impact the money in your savings account?
Inflation increases the value of the money in your account
The purchasing power of your money decreases over time
Inflation has no impact on $ in your savings account.
Inflation decreases only the $ you earn in interest
11
Which is TRUE about Certificates of Deposit (CDs)?
You agree to keep $ in a CD for an undetermined time period
The bank pays you interest in return
The bank can loan out the $ in your CD
You pay the bank some interest to keep $ in the CD
12
Which of the following is FALSE about saving and investing?
Saving is for short-term; investing is for the longer-term
Both saving and investing generally have low returns
Saving has more risk; investing has less risk
Saving doesn't outpace inflation; investing usually does
13
Why is it so hard to save?
Fear of missing out
All of the above
Keeping up with the Jones
Shopping for sales is a popular past time.
14
The Rule of 72 informs investors how long it will take to double money given an annual % rate.
False
True
15
Which is NOT a typical goal for a savings account?
To create an emergency fund
To buy groceries for this week
To pay for higher education
To save for a new car
16
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
17
Which of the following is NOT a fee associated with a savings account?
Account Inactivity Fee
Out-of-network ATM cash withdrawal
Account maintenance fee
Online transfer fee
18
What is a good strategy to help you save?
1st, spend money on all expenses; put the rest into saving
Tap into your savings regularly to purchase small items
Keep your spending and saving money together in 1 account
Pay yourself first - set aside money for savings each month
19
What might you need to open a savings account?
Your previous year's tax returns (or your parents')
Minimum opening deposit
Identification
The routing number to a checking account
20
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

Klein FinLit NGPF Savings Unit Flashcards | StudBud

Klein FinLit NGPF Savings Unit

20 termsStudBud Administration433 plays

Flashcards20 cardsFPractice quizPHost liveL

Questions 20

Answers

1
True or False: You need a checking account to open a savings account.
True
False
2
Saving accounts differ from checking accounts in that...
Saving accounts let you withdraw $ an unlimited # of times
Money in a saving account can be used to fund a bank's loans
Saving accounts come with more fees than checking accounts
Checking accounts offer higher interest rates
3
Assuming a rate of growth of 8%, in how many years will your $ double?
9 years
12 years
3 years
6 years
4
How is compound interest different than simple interest?
It's not different; they are one and the same
It is double the simple interest earned on an investment
It is simple interest + interest earned on that interest
It is simple interest - interest earned on that interest
5
A type of savings account offered by traditional and online banks that is NOT FDIC insured.
Money Market Fund
Passbook savings
Statement savings
Certificates of Deposit
6
What are some reasons for why so many Americans live paycheck-to-paycheck?
Many people impulse shop
Many people only buy what they NEED, not what they WANT
Many people are paying themselves first and then spending
Many people spend within their budget
7
What is a general rule of thumb on how much you should save?
10% of your income
20% of your income
5% of your income
30% of your income
8
About how much should you save in an emergency fund?
3-6 months of living expenses
1-3 months of living expenses
6-9 months of living expenses
9-12 months of living expenses
9
What type of account is limited to six withdrawals per month with no penalties?
Certificate of Deposit
Savings Account
401k retirement account
Checking account
10
How does inflation impact the money in your savings account?
Inflation increases the value of the money in your account
The purchasing power of your money decreases over time
Inflation has no impact on $ in your savings account.
Inflation decreases only the $ you earn in interest
11
Which is TRUE about Certificates of Deposit (CDs)?
You agree to keep $ in a CD for an undetermined time period
The bank pays you interest in return
The bank can loan out the $ in your CD
You pay the bank some interest to keep $ in the CD
12
Which of the following is FALSE about saving and investing?
Saving is for short-term; investing is for the longer-term
Both saving and investing generally have low returns
Saving has more risk; investing has less risk
Saving doesn't outpace inflation; investing usually does
13
Why is it so hard to save?
Fear of missing out
All of the above
Keeping up with the Jones
Shopping for sales is a popular past time.
14
The Rule of 72 informs investors how long it will take to double money given an annual % rate.
False
True
15
Which is NOT a typical goal for a savings account?
To create an emergency fund
To buy groceries for this week
To pay for higher education
To save for a new car
16
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
17
Which of the following is NOT a fee associated with a savings account?
Account Inactivity Fee
Out-of-network ATM cash withdrawal
Account maintenance fee
Online transfer fee
18
What is a good strategy to help you save?
1st, spend money on all expenses; put the rest into saving
Tap into your savings regularly to purchase small items
Keep your spending and saving money together in 1 account
Pay yourself first - set aside money for savings each month
19
What might you need to open a savings account?
Your previous year's tax returns (or your parents')
Minimum opening deposit
Identification
The routing number to a checking account
20
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