Savings

Why Saving is Important

200

What are 3 things you can save for?

Vary

400

(Double Points)

What is the timeline for each savings goals?

Short Term

Medium Term

Long Term

Short Term 2-6 Months

Medium Term 6 months - 2 Years

Long Term 3+ years

600

One reason people should save money is to create an "emergency fund." Which of these is an example of an unexpected expense you might use an emergency fund to pay for?

1. 6 months of cable TV
2. A new cell phone if yours is stolen on the bus
3. Valentine's Day gifts for friends and family
4. Your back-to-school clothes and supplies

A new cell phone if yours is stolen on the bus

800

TJ is in 7th grade right now and cuts grass for neighbors to earn money. He wants to set one short-term savings goal and one long-term savings goal. Which answer best matches those goals?

1. Short-term = a pack of gum // long-term = 3 packs of gum
2. Short-term = a car // long-term = a nicer car
3. Short-term = expensive new sneakers // long-term = a car
4. Short-term = birthday present for his mom // long-term = a trip to the movies

Short-term = expensive new sneakers // long-term = a car

1000

What does it mean to "pay yourself first"?

Any time you get paid, set aside some portion to save before you do any spending

Building Your Savings

200

What was the name of the game played to manage Enzo's Show Money

Money Magic

400

(Double Points)

If you have a goal to save $3000 over the next 4 years how do you break it down to find out how much you need to save per day?

Divide by 4 years, Then 12 Months, Then 4 Weeks, Then 7 days

600

4. TJ typically cuts 5 lawns per month and earns $20 per lawn. He spends money throughout the month on things like snacks, tickets to high school football and basketball games, and new video games. Somehow, he ends every month with only a few dollars left. Which behavior change is MOST likely to help TJ save more money?

1. Spend less time cutting grass and more time saving money
2. Ask his parents for an allowance and try to save that money instead
3. Before he spends, set aside $5 to save out of every $20 payment
4. Spend money on a better lawn mower so he can cut more grass

Before he spends, set aside $5 to save out of every $20 payment

800

Diamond makes $200 per month by babysitting her neighbor's son after school. She wants to buy her dad something really special for Father's Day next year, and the holiday is 10 months away. Which strategy will work best to make sure she has enough saved by then?

Figure out how much she'd like to spend, and then divide the cost by 10 so she knows how much to save each month

1000

Ro's school offers an overnight trip to Washington DC for all 9th grade US history students. Even though the trip is 20 months in the future, she knows she wants to attend and that she should start saving now. If the trip costs $500 total, how much does she need to save per month to have enough?

$25 per month

Checking vs Savings

200

How much does the FDIC insurance cover up to?

$250,000

400

Sam wants to buy school supplies for a project she is working on. Which account should they use?

Checking Account

600

Which statement best describes what it means if your bank is "FDIC insured?"

If you have money in your checking or savings account and the bank goes out of business, you are guaranteed to get your money back up to a certain limit

800

What is one DOWNSIDE of using a savings account instead of a checking account?

Your savings account has a limit of 6 withdrawals per month, while your checking account does not

1000

What is one BENEFIT of using a savings account instead of a checking account?

Your savings account will earn interest, so the money in your account will grow without you doing anything

Opening Your Savings Account

200

Why can't you open a savings account on your own?

Because you have to be 18 years old

400

(Double Points)

What are the two major things you do not want when opening a savings account?

No Monthly Fees and No Minimum Balance Requirement

600

As a teenager opening a savings account, which two features are MOST important for you to have in your account?

No monthly fees and no minimum balance requirement

800

(Double Points)

How many times during this statement period was money withdrawn from this account?

1

1000

When you open your first savings account, you will need to bring each of these things EXCEPT...

1. An adult if you're under 18
2. Proof of your mailing address
3. A letter from your employer
4. Some form of identification (ID)

A letter from your employer

The Power of Compounding Interest

200

Which is more valuable one million dollars and or a penny doubled over a month every day?

Penny

400

How long does it take in months for compound interest to beat simple interest?

2 Months

600

(Double Points)

How much was Roger charged in fees during this statement period?

$0

800

What is the financial benefit of compound interest?

When you earn compound interest, you earn interest on both the principal and any interest you've already earned

1000

(Triple Points)

Cylina's savings account is earning 2% per year. She has a balance of $1000 in the account, and she is planning to leave the money there for 4 years, until she's ready to start college. What equation could she use to determine how much simple interest her account will earn over that time?

Interest = $1000 x 2% x 4