What might you need to open a savings account?

Identification, Minimum opening deposit

Define Emergency Fund

Extra money set aside to be used for unpredictable expenses, Money for emergency

How does the 50/30/20 rule of thumb for budgeting allocate your income?

50% Needs, 30% Wants, 20% Savings & Debt Repayment

A key difference between saving and investing is

Saving is emergencies & goals, investing is long-term wealth

What is a good strategy to help you save?

Pay yourself first - set aside money for savings each month

Why is it important to start investing as soon as possible?

You have more time for your money to compound

Which of the following is FALSE about saving?

Saving has more risk; investing has less risk

How does inflation impact the money in your savings account?

The purchasing power of your money decreases over time

How is compound sometimes described?

interest earned is added to the principal and the new amount earns interest

Which of the following is not one of the 3 basic reasons for saving money?

Have money available to lend to friends

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

Buying items, often unneeded, without planning

Which of the following is an example of buying something you NEED?

"I want to replace something that is no longer working."

studbud

Saving Review

32 termsStudBud Administration190 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.

Flashcards32 cardsFPractice quizPHost liveL

Questions 32

Answers

1
Money you earn
income
spending
credit
budget
2
Saving money over time for a large purchase
Emergency fund
inflation fund
Interest rate
Sinking fund
3
What might you need to open a savings account?
The routing number to a checking account
Identification
Minimum opening deposit
Your previous year's tax returns (or your parents')
4
A fee paid by a borrower to the lender for the use of borrowed money
Economy
Personal finance
LoAn
Interest
5
True or False: You should start saving money NOW.
False.
True.
6
Define Emergency Fund
Extra money set aside to be used for unpredictable expenses
Money for emergency
monthly expenses
pocket expenses
7
How does the 50/30/20 rule of thumb for budgeting allocate your income?
50% Wants, 30% Needs, 20% Savings & Debt Repayment
50% Savings & Debt Repayment, 30% Wants, 20% Needs
50% Needs, 30% Savings & Debt Repayment, 20% Wants
50% Needs, 30% Wants, 20% Savings & Debt Repayment
8
A key difference between saving and investing is
Investing has a guaranteed return, savings does not
Savings is for everyone, investing if for the wealthy
Saving is emergencies & goals, investing is long-term wealth
Your money is insured when investing, it is not in savings
9
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
10
Why is it important to start investing as soon as possible?
You take less risk when you are young, so money will be safe
Investing is an easy way to make quick money
Fees on investments are cheaper when you are younger
You have more time for your money to compound
11
Which is NOT a typical goal for a savings account?
To pay for higher education
To buy groceries for this week
To create an emergency fund
To save for a new car
12
What is the formula for compound interest?
FV=PV(1+r/m)mt
E=mc2
13
The money you have on deposit in a savings account.
principle
compounded amount
principal
balance
14
In the 50/30/20 Rule, the 30 is for
Needs
Wants
Income
Saving
15
Which of the following is FALSE about saving?
Saving is for short-term; investing is for the longer-term
Saving has more risk; investing has less risk
Saving doesn't usually outpace inflation
Saving has a low rate of return (% rates). You won't earn a lot of interest
16
About how much should an adult save in an emergency fund?
3-6 months of living expenses
9-12 months of living expenses
6-9 months of living expenses
1-3 months of living expenses
17
How does inflation impact the money in your savings account?
Inflation has no impact on $ in your savings account.
Inflation decreases only the $ you earn in interest
The purchasing power of your money decreases over time
Inflation increases the value of the money in your account
18
True or False: You need a checking account to open a savings account.
True
False
19
Which one is the hardest thing about saving money?
Have money.
Find a place to save the money.
Getting started.
Find something to spend the money.
20
How is compound sometimes described?
interest earned is added to the principal and the new amount earns interest
It's not different; they are one and the same
Compound interest earns less of a return
It is double the simple interest earned on an investment
21
Credit cards and car loans are a great idea if you can’t afford something
True
False
22
What is compound interest?
interest on interest
interest on asset
the liquidity of interest
a decrease in interest rate
23
A plan for spending and saving money ___________________
taxes
lease
savings
budget
24
Which of the following is not one of the 3 basic reasons for saving money?
Build wealth
Emergency Fund
Have money available to lend to friends
Large purchases
25
Saving accounts differ from checking accounts in that...
Saving accounts come with more fees than checking accounts
Checking accounts offer higher interest rates
Saving accounts let you withdraw $ an unlimited # of times
Money in a saving account can be used to fund a bank's loans
26
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
27
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
28
Impulse buying is...
Item’s price per ounce, quart, pound, or other unit
The last date product can be used with high quality
Indication of where and when product was packaged
Buying items, often unneeded, without planning
29
What is a general rule of thumb on how much you should save?
20% of your income
30% of your income
10% of your income
5% of your income
30
Which of the following is an example of buying something you NEED?
"I'm feeling down, and I need to boost my spirits."
"I don't want to miss out on these deals during the sale!"
"I want to impress someone/ change how they feel about me."
"I want to replace something that is no longer working."
31
This protects you from losing your money if the bank goes under.
IRS
FDIC
FDUC
FDIC CORP
32
How much money should a student have for emergencies?
1000.00
25.00
5.00
500.00

Saving Review Flashcards | StudBud

Saving Review

32 termsStudBud Administration190 plays

Flashcards32 cardsFPractice quizPHost liveL

Questions 32

Answers

1
Money you earn
income
spending
credit
budget
2
Saving money over time for a large purchase
Emergency fund
inflation fund
Interest rate
Sinking fund
3
What might you need to open a savings account?
The routing number to a checking account
Identification
Minimum opening deposit
Your previous year's tax returns (or your parents')
4
A fee paid by a borrower to the lender for the use of borrowed money
Economy
Personal finance
LoAn
Interest
5
True or False: You should start saving money NOW.
False.
True.
6
Define Emergency Fund
Extra money set aside to be used for unpredictable expenses
Money for emergency
monthly expenses
pocket expenses
7
How does the 50/30/20 rule of thumb for budgeting allocate your income?
50% Wants, 30% Needs, 20% Savings & Debt Repayment
50% Savings & Debt Repayment, 30% Wants, 20% Needs
50% Needs, 30% Savings & Debt Repayment, 20% Wants
50% Needs, 30% Wants, 20% Savings & Debt Repayment
8
A key difference between saving and investing is
Investing has a guaranteed return, savings does not
Savings is for everyone, investing if for the wealthy
Saving is emergencies & goals, investing is long-term wealth
Your money is insured when investing, it is not in savings
9
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
10
Why is it important to start investing as soon as possible?
You take less risk when you are young, so money will be safe
Investing is an easy way to make quick money
Fees on investments are cheaper when you are younger
You have more time for your money to compound
11
Which is NOT a typical goal for a savings account?
To pay for higher education
To buy groceries for this week
To create an emergency fund
To save for a new car
12
What is the formula for compound interest?
FV=PV(1+r/m)mt
E=mc2
13
The money you have on deposit in a savings account.
principle
compounded amount
principal
balance
14
In the 50/30/20 Rule, the 30 is for
Needs
Wants
Income
Saving
15
Which of the following is FALSE about saving?
Saving is for short-term; investing is for the longer-term
Saving has more risk; investing has less risk
Saving doesn't usually outpace inflation
Saving has a low rate of return (% rates). You won't earn a lot of interest
16
About how much should an adult save in an emergency fund?
3-6 months of living expenses
9-12 months of living expenses
6-9 months of living expenses
1-3 months of living expenses
17
How does inflation impact the money in your savings account?
Inflation has no impact on $ in your savings account.
Inflation decreases only the $ you earn in interest
The purchasing power of your money decreases over time
Inflation increases the value of the money in your account
18
True or False: You need a checking account to open a savings account.
True
False
19
Which one is the hardest thing about saving money?
Have money.
Find a place to save the money.
Getting started.
Find something to spend the money.
20
How is compound sometimes described?
interest earned is added to the principal and the new amount earns interest
It's not different; they are one and the same
Compound interest earns less of a return
It is double the simple interest earned on an investment
21
Credit cards and car loans are a great idea if you can’t afford something
True
False
22
What is compound interest?
interest on interest
interest on asset
the liquidity of interest
a decrease in interest rate
23
A plan for spending and saving money ___________________
taxes
lease
savings
budget
24
Which of the following is not one of the 3 basic reasons for saving money?
Build wealth
Emergency Fund
Have money available to lend to friends
Large purchases
25
Saving accounts differ from checking accounts in that...
Saving accounts come with more fees than checking accounts
Checking accounts offer higher interest rates
Saving accounts let you withdraw $ an unlimited # of times
Money in a saving account can be used to fund a bank's loans
26
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
27
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
28
Impulse buying is...
Item’s price per ounce, quart, pound, or other unit
The last date product can be used with high quality
Indication of where and when product was packaged
Buying items, often unneeded, without planning
29
What is a general rule of thumb on how much you should save?
20% of your income
30% of your income
10% of your income
5% of your income
30
Which of the following is an example of buying something you NEED?
"I'm feeling down, and I need to boost my spirits."
"I don't want to miss out on these deals during the sale!"
"I want to impress someone/ change how they feel about me."
"I want to replace something that is no longer working."
31
This protects you from losing your money if the bank goes under.
IRS
FDIC
FDUC
FDIC CORP
32
How much money should a student have for emergencies?
1000.00
25.00
5.00
500.00