Which is TRUE about Certificates of Deposit (CDs)?

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

What is a good strategy to help you save?

Pay yourself first - set aside money for savings each month

How does inflation impact the money in your savings account?

The purchasing power of your money decreases over time

What is a 529 account?

A tax exempt fund that lets your savings grow for school

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

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

Which of the following is FALSE about saving and investing?

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

What might you need to open a savings account?

Minimum opening deposit, Identification

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 is compound interest different than simple interest?

It is simple interest + interest earned on that interest

Saving accounts differ from checking accounts in that...

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

Which is TRUE about online saving accounts?

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

studbud

NGPF Saving

20 termsStudBud Administration236 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
How is wealth defined?
All assets, including money in the bank + retirement
Assets - Debts
Debts - Assets
How much money you have in your Checking and Saving accounts
2
Which is TRUE about Certificates of Deposit (CDs)?
You pay the bank some interest to keep $ in the CD
The bank pays you interest in return
The bank can loan out the $ in your CD
You agree to keep $ in a CD for an undetermined time period
3
What is a good strategy to help you save?
Pay yourself first - set aside money for savings each month
Tap into your savings regularly to purchase small items
Keep your spending and saving money together in 1 account
1st, spend money on all expenses; put the rest into saving
4
How does inflation impact the money in your savings account?
Inflation has no impact on $ 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
5
What is a 529 account?
A tax exempt fund that lets your savings grow for school
A special type of saving account for college students only
A special type of saving account for minors
A type of retirement account for teens & younger adults
6
Which is NOT a typical goal for a savings account?
To buy groceries for this week
To create an emergency fund
To pay for higher education
To save for a new car
7
About how much should you save in an emergency fund?
1-3 months of living expenses
3-6 months of living expenses
6-9 months of living expenses
9-12 months of living expenses
8
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
Compounding occurs at a slower rate in a Roth IRA
It can help teens start saving for retirement early
9
True or False: You need a checking account to open a savings account.
True
False
10
Assuming a rate of growth of 8%, in how many years will your $ double?
6 years
12 years
9 years
3 years
11
How does the 50-20-30 rule distribute your income?
50% expenses, 20% flexible spending, 30% saving
50% expenses, 20% saving, 30% flexible spending
50% flexible spending, 20% saving, 30% expenses
50% saving, 20% flexible spending, 30% expenses
12
Which of the following is FALSE about saving and investing?
Saving has more risk; investing has less risk
Both saving and investing generally have low returns
Saving is for short-term; investing is for the longer-term
Saving doesn't outpace inflation; investing usually does
13
What might you need to open a savings account?
Minimum opening deposit
The routing number to a checking account
Your previous year's tax returns (or your parents')
Identification
14
What is a benefit of opening up a Health Savings Account (HSA)?
You can use pre-tax $ to pay for out-of-pocket costs
The funds expire only every 5 years
You can use the funds for retirement once you're 75
You earn interest, but it's taxed
15
How is compound interest different than simple interest?
It is simple interest + interest earned on that interest
It is double the simple interest earned on an investment
It is simple interest - interest earned on that interest
It's not different; they are one and the same
16
At what rate does your $ need to grow at to double in 18 months?
2%
4%
6%
8%
17
What are some reasons for why so many Americans live paycheck-to-paycheck?
Many people impulse shop
Many people are paying themselves first and then spending
Many people spend within their budget
Many people only buy what they NEED, not what they WANT
18
Saving accounts differ from checking accounts in that...
Checking accounts offer higher interest rates
Saving accounts come with more fees than checking accounts
Saving accounts let you withdraw $ an unlimited # of times
Money in a saving account can be used to fund a bank's loans
19
What is a general rule of thumb on how much you should save?
20% of your income
5% of your income
30% of your income
10% of your income
20
Which is TRUE about online saving accounts?
Usually have lower costs compared to brick-and-mortar banks
Usually have higher interest rates than non-online accounts
You can withdraw money an unlimited # of times
Online accounts are not FDIC insured

NGPF Saving Flashcards | StudBud

NGPF Saving

20 termsStudBud Administration236 plays

Flashcards20 cardsFPractice quizPHost liveL

Questions 20

Answers

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