Saving - Assessment

1.

Multiple Choice

20 sec

1 pt

How is wealth defined?

How much money you have in your Checking and Saving accounts

Debts - Assets

All assets, including money in the bank + retirment

Assets - Debts

2.

Multiple Select

30 sec

1 pt

Which of the following is FALSE about saving and investing? (hint: choose 2 correct answers)

Saving doesn't outpace inflation; investing usually does

Both saving and investing generally have low returns

Saving is for short-term; investing is for the long-term

Saving has more risk; investing has less risk

3.

Multiple Choice

1 min

1 pt

Which is NOT a typical goal for a savings account?

To create an emergency fund

To pay for higher education

To save for a new car

To buy groceries for this week

4.

Multiple Choice

20 sec

1 pt

What is a general rule of thumb on how much you should save?

5% of your income

10% of your income

20% of your income

30% of your income

5.

Multiple Choice

20 sec

1 pt

What is a 529 account?

A type of retirement account for teens & younger adults

A special type of saving account for minors

A tax exempt fund that lets your savings grow for school

A special type of saving account for college students only

6.

Multiple Choice

20 sec

1 pt

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

7.

Multiple Choice

1 min

1 pt

What is a good strategy to help you save?

1st, spend money on all expenses; put the rest into saving

Tap into your savings on a regular basis to purchase small items, like snacks

Pay yourself first - set aside money for savings each month

Keep your spending and saving money together in 1 account

8.

Multiple Select

30 sec

1 pt

Which of the following is FALSE about opening up a Roth IRA? (hint: choose 2 correct answers)

A person of any age with earned income can open one

It can help teens start saving for retirement early

Compounding occurs at a slower rate in a Roth IRA

You need to put at least $1,000 in it every year

9.

Multiple Choice

1 min

1 pt

What is a reason for why so many Americans live paycheck-to-paycheck?

Many people are paying themselves first and then spending

Many people only buy what they NEED, not what they WANT

Many people impulse shop

Many people spend within their budget

10.

Multiple Choice

20 sec

1 pt

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

The funds expire only every 5 years

You earn interest, but it's taxed

You can use the funds for retirement once you're 75

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

11.

Multiple Choice

20 sec

1 pt

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.

Multiple Choice

20 sec

1 pt

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

13.

Multiple Select

30 sec

1 pt

Which is TRUE about online saving accounts? (hint: choose 2 correct answers)

Usually have higher interest rates than non-online accounts

They usually have lower costs compared to brick-and-mortar banks

Online accounts are not FDIC insured

You can withdraw money an unlimited # of times

14.

Multiple Choice

20 sec

1 pt

Assuming a rate of growth of 8%, in how many years will your $ double?

3 years

6 years

9 years

12 years

15.

Multiple Choice

20 sec

1 pt

At what rate does your $ need to grow in order to double in 18 years?

2%

4%

6%

8%

16.

Multiple Choice

20 sec

1 pt

Saving accounts differ from checking accounts in that...

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

Saving accounts let you withdraw $ an unlimited # of times

Saving accounts come with more fees than checking accounts

Checking accounts offer higher interest rates

17.

Multiple Select

30 sec

1 pt

What might you need to open a savings account? (hint: choose 2 correct answers)

Minimum opening deposit

Your previous year's tax returns (or your parents')

The routing number to a checking account

Identification

18.

Multiple Choice

20 sec

1 pt

How does inflation impact the money in your savings account?

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.

The purchasing power of your money decreases over time

19.

Multiple Choice

20 sec

1 pt

True or False: You need a checking account to open a savings account.

True

False

20.

Multiple Select

30 sec

1 pt

Which is TRUE about Certificates of Deposit (CDs)? (hint: choose 2 correct answers)

You agree to keep $ in a CD for an undetermined period of time

You pay the bank some interest to keep $ in the CD

The bank can loan out the $ in your CD

The bank pays you interest in return

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