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- 1. Multiple Choice
How is wealth defined?How much money you have in your Checking and Saving accountsDebts - AssetsAll assets, including money in the bank + retirmentAssets - Debts - 2. Multiple Choice
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 ChoiceWhich is NOT a typical goal for a savings account?To create an emergency fundTo pay for higher educationTo save for a new carTo buy groceries for this week
- 4. Multiple ChoiceWhat is a general rule of thumb on how much you should save?5% of your income10% of your income20% of your income30% of your income
- 5. Multiple ChoiceWhat is a 529 account?A type of retirement account for teens & younger adultsA special type of saving account for minorsA tax exempt fund that lets your savings grow for schoolA special type of saving account for college students only
- 6. Multiple ChoiceAbout how much should you save in an emergency fund?1-3 months of living expenses3-6 months of living expenses6-9 months of living expenses9-12 months of living expenses
- 7. Multiple ChoiceWhat is a good strategy to help you save?1st, spend money on all expenses; put the rest into savingTap into your savings on a regular basis to purchase small items, like snacksPay yourself first - set aside money for savings each monthKeep your spending and saving money together in 1 account
- 8. Multiple Choice
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
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 ChoiceWhat is a benefit of opening up a Health Savings Account (HSA)?The funds expire only every 5 yearsYou earn interest, but it's taxedYou can use the funds for retirement once you're 75You can use pre-tax $ to pay for out-of-pocket costs
- 11. Multiple ChoiceHow does the 50-20-30 rule distribute your income?50% expenses, 20% flexible spending, 30% saving50% expenses, 20% saving, 30% flexible spending50% flexible spending, 20% saving, 30% expenses50% saving, 20% flexible spending, 30% expenses
- 12. Multiple ChoiceHow is compound interest different than simple interest?It is simple interest - interest earned on that interestIt is double the simple interest earned on an investmentIt is simple interest + interest earned on that interestIt's not different; they are one and the same
- 13. Multiple Choice
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 ChoiceAssuming a rate of growth of 8%, in how many years will your $ double?3 years6 years9 years12 years
- 15. Multiple Choice
At what rate does your $ need to grow in order to double in 18 years?
2%
4%
6%
8%
- 16. Multiple ChoiceSaving accounts differ from checking accounts in that...Money in a saving account can be used to fund a bank's loansSaving accounts let you withdraw $ an unlimited # of timesSaving accounts come with more fees than checking accountsChecking accounts offer higher interest rates
- 17. Multiple Choice
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 ChoiceHow does inflation impact the money in your savings account?Inflation decreases only the $ you earn in interestInflation increases the value of the money in your accountInflation has no impact on $ in your savings account.The purchasing power of your money decreases over time
- 19. Multiple ChoiceTrue or False: You need a checking account to open a savings account.TrueFalse
- 20. Multiple Choice
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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