Savings 1
This is something every spending plan should have.
What are goals? long term/short term
This ensures you do not spend beyond your limits, help to stay on budget, alert you to unauthorized activity.
What is reviewing your monthly statement?
What is the recommendation for how much you should save for an emergency fund?
3 - 6 months
What types of savings accounts do you want to avoid?
Ones that have maintenance fees, minimum balances, or withdrawal fees
What is the benefit of automating your savings account contributions?
Your money will be transferred automatically and guarantees you will be contributing to your savings.
Name that Interest!
interest is paid on the principal amount only.
Simple
If you have money saved now that you intend to spend in 5 or more years, which type of savings account would have the highest interest rate?
CD or certificate of deposit
Experts suggest you try to save what % of your income.
What is 20%?
Which strategy will help you save the most money?
As soon as you receive your paycheck, put a fixed amount or percentage of your money directly into your savings.
Name that Interest!
interest is paid on the principal amount and on the interest already earned.
Compound
This account is a retirement account that is done through your employer
401K
This plan offers a greater understanding and control over finances.
What is creating a Budget?
The best time to begin saving for retirement.
Early as possible or when you start your career
How can credit cards make it more challenging to save?
Credit cards make it easier and more tempting to spend money you do not have.
This account is a hybrid of a Checking and Savings. It may require a higher minimum balance than other accounts.
banking money market
How do you distribute your money when using the 50-20-30 rule?
50% rent/essential/fixed expenses
30% entertainment, dining, shopping
20% retirement, savings, emergency fund
Keon receives a $1,000 paycheck. According to the 50/30/20 rule, how much should he put aside for saving?
$200
What does it mean to "pay yourself first"?
Deposit money into your savings account before spending on anything else.
What is the difference between a checking and a savings account?
a checking account is used to pay bills, expenses, does not earn interest
a savings account is used to store/save money and will earn interest
What is a CD or certificate of deposit?
an account that allows you to save money typically at a fixed interest rate for a fixed amount of time—say, 6 months, 1 year or 5 years. 1.