How does inflation impact the money in your savings account?

The purchasing power of your money decreases over time

What is a good strategy to help you save?

Pay yourself first - set aside money for savings each month

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

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

Which is TRUE about online saving accounts?

Usually have higher interest rates than non-online accounts

What might you need to open a savings account?

Identification, Minimum opening deposit

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

Which of the following is FALSE about saving and investing?

Saving has more risk; investing has less risk

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Duplicate of NGPF - Saving

14 termsStudBud Administration64 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.

Flashcards14 cardsFPractice quizPHost liveL

Questions 14

Answers

1
How does inflation impact the money in your savings account?
The purchasing power of your money decreases over time
Inflation decreases only the $ you earn in interest
Inflation increases the value of the money in your account
Inflation has no impact on $ in your savings account.
2
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 only buy what they NEED, not what they WANT
Many people are paying themselves first and then spending
3
True or False: You need a checking account to open a savings account.
True
False
4
What is a good strategy to help you save?
1st, spend money on all expenses; put the rest into saving
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
5
About how much should you save in an emergency fund?
6-9 months of living expenses
3-6 months of living expenses
1-3 months of living expenses
9-12 months of living expenses
6
What is a benefit of opening up a Health Savings Account (HSA)?
You earn interest, but it's taxed
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
7
Which is NOT a typical goal for a savings account?
To save for a new car
To pay for higher education
To buy groceries for this week
To create an emergency fund
8
Which is TRUE about online saving accounts?
Online accounts are not FDIC insured
Usually have higher costs compared to brick-and-mortar banks
Usually have higher interest rates than non-online accounts
You can withdraw money an unlimited # of times
9
What might you need to open a savings account?
Your previous year's tax returns (or your parents')
Identification
Minimum opening deposit
The routing number to a checking account
10
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% expenses, 20% saving, 30% flexible spending
50% flexible spending, 20% saving, 30% expenses
11
How is compound interest different than simple interest?
It is simple interest + interest earned on that 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
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 high returns
Saving has more risk; investing has less risk
Saving doesn't outpace inflation; investing usually does
13
What is a general rule of thumb on how much you should save?
30% of your income
5% of your income
20% of your income
10% of your income
14
How is wealth defined?
Assets - Debts
Debts - Assets
How much money you have in your Checking and Saving accounts
All assets, including money in the bank + retirement

Duplicate of NGPF - Saving Flashcards | StudBud

Duplicate of NGPF - Saving

14 termsStudBud Administration64 plays

Flashcards14 cardsFPractice quizPHost liveL

Questions 14

Answers

1
How does inflation impact the money in your savings account?
The purchasing power of your money decreases over time
Inflation decreases only the $ you earn in interest
Inflation increases the value of the money in your account
Inflation has no impact on $ in your savings account.
2
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 only buy what they NEED, not what they WANT
Many people are paying themselves first and then spending
3
True or False: You need a checking account to open a savings account.
True
False
4
What is a good strategy to help you save?
1st, spend money on all expenses; put the rest into saving
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
5
About how much should you save in an emergency fund?
6-9 months of living expenses
3-6 months of living expenses
1-3 months of living expenses
9-12 months of living expenses
6
What is a benefit of opening up a Health Savings Account (HSA)?
You earn interest, but it's taxed
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
7
Which is NOT a typical goal for a savings account?
To save for a new car
To pay for higher education
To buy groceries for this week
To create an emergency fund
8
Which is TRUE about online saving accounts?
Online accounts are not FDIC insured
Usually have higher costs compared to brick-and-mortar banks
Usually have higher interest rates than non-online accounts
You can withdraw money an unlimited # of times
9
What might you need to open a savings account?
Your previous year's tax returns (or your parents')
Identification
Minimum opening deposit
The routing number to a checking account
10
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% expenses, 20% saving, 30% flexible spending
50% flexible spending, 20% saving, 30% expenses
11
How is compound interest different than simple interest?
It is simple interest + interest earned on that 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
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 high returns
Saving has more risk; investing has less risk
Saving doesn't outpace inflation; investing usually does
13
What is a general rule of thumb on how much you should save?
30% of your income
5% of your income
20% of your income
10% of your income
14
How is wealth defined?
Assets - Debts
Debts - Assets
How much money you have in your Checking and Saving accounts
All assets, including money in the bank + retirement