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

How does inflation impact the money in your savings account?

The purchasing power of your money decreases over time

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

A tax exempt fund to help you save for post secondary education

Saving accounts differ from checking accounts in that...

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

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

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

How is compound interest different than simple interest?

It is simple interest + interest earned on that interest

What is a good strategy to help you save?

Pay yourself first - set aside money for savings each month

studbud

Saving MEL

17 termsStudBud Administration9 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.

Flashcards17 cardsFPractice quizPHost liveL

Questions 17

Answers

1
Assuming a rate of growth of 8%, in how many years will your $ double?
3 years
12 years
9 years
6 years
2
Which is TRUE about online saving accounts?
You can withdraw money an unlimited # of times
Usually have higher interest rates than non-online accounts
Online accounts are not FDIC insured
Usually have lower costs compared to brick-and-mortar banks
3
Which is NOT a typical goal for a savings account?
To pay for higher education
To buy groceries for this week
To save for a new car
To create an emergency fund
4
About how much should you save in an emergency fund?
3-6 months of living expenses
6-9 months of living expenses
1-3 months of living expenses
9-12 months of living expenses
5
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
6
Which of the following is FALSE about saving and investing?
Saving doesn't outpace inflation; investing usually does
Saving is for short-term; investing is for the longer-term
Saving has more risk; investing has less risk
Both saving and investing generally have low returns
7
How is wealth defined?
Assets - Debts
How much money you have in your Checking and Saving accounts
Debts - Assets
All assets, including money in the bank + retirement
8
What might you need to open a savings account?
The routing number to a checking account
Minimum opening deposit
Identification
Your previous year's tax returns (or your parents')
9
What is a RESP?
A type of retirement account for teens & younger adults
A special type of saving account for minors
A special type of saving account for college students only
A tax exempt fund to help you save for post secondary education
10
Saving accounts differ from checking accounts in that...
Saving accounts come with more fees than checking accounts
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
11
True or False: You need a checking account to open a savings account.
False
True
12
How does the 50-20-30 rule distribute your income?
50% flexible spending, 20% saving, 30% expenses
50% expenses, 20% saving, 30% flexible spending
50% expenses, 20% flexible spending, 30% saving
50% saving, 20% flexible spending, 30% expenses
13
How is compound interest different than simple interest?
It's not different; they are one and the same
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
14
At what rate does your $ need to grow at to double in 18 years?
8%
4%
6%
2%
15
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
Keep your spending and saving money together in 1 account
1st, spend money on all expenses; put the rest into saving
16
What is a general rule of thumb on how much you should save?
5% of your income
20% of your income
10% of your income
30% of your income
17
What are some reasons for why so many Canadians 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

Saving MEL Flashcards | StudBud

Saving MEL

17 termsStudBud Administration9 plays

Flashcards17 cardsFPractice quizPHost liveL

Questions 17

Answers

1
Assuming a rate of growth of 8%, in how many years will your $ double?
3 years
12 years
9 years
6 years
2
Which is TRUE about online saving accounts?
You can withdraw money an unlimited # of times
Usually have higher interest rates than non-online accounts
Online accounts are not FDIC insured
Usually have lower costs compared to brick-and-mortar banks
3
Which is NOT a typical goal for a savings account?
To pay for higher education
To buy groceries for this week
To save for a new car
To create an emergency fund
4
About how much should you save in an emergency fund?
3-6 months of living expenses
6-9 months of living expenses
1-3 months of living expenses
9-12 months of living expenses
5
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
6
Which of the following is FALSE about saving and investing?
Saving doesn't outpace inflation; investing usually does
Saving is for short-term; investing is for the longer-term
Saving has more risk; investing has less risk
Both saving and investing generally have low returns
7
How is wealth defined?
Assets - Debts
How much money you have in your Checking and Saving accounts
Debts - Assets
All assets, including money in the bank + retirement
8
What might you need to open a savings account?
The routing number to a checking account
Minimum opening deposit
Identification
Your previous year's tax returns (or your parents')
9
What is a RESP?
A type of retirement account for teens & younger adults
A special type of saving account for minors
A special type of saving account for college students only
A tax exempt fund to help you save for post secondary education
10
Saving accounts differ from checking accounts in that...
Saving accounts come with more fees than checking accounts
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
11
True or False: You need a checking account to open a savings account.
False
True
12
How does the 50-20-30 rule distribute your income?
50% flexible spending, 20% saving, 30% expenses
50% expenses, 20% saving, 30% flexible spending
50% expenses, 20% flexible spending, 30% saving
50% saving, 20% flexible spending, 30% expenses
13
How is compound interest different than simple interest?
It's not different; they are one and the same
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
14
At what rate does your $ need to grow at to double in 18 years?
8%
4%
6%
2%
15
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
Keep your spending and saving money together in 1 account
1st, spend money on all expenses; put the rest into saving
16
What is a general rule of thumb on how much you should save?
5% of your income
20% of your income
10% of your income
30% of your income
17
What are some reasons for why so many Canadians 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