Why save?
What does it mean to save money?
Putting money aside for the future instead of spending it right away.
What is a piggy bank used for?
Storing coins and small amounts of cash.
What should you do with part of every allowance or gift?
Save a percentage of it.
What is an emergency fund?
Money saved for unexpected needs.
What do banks do with the money you save in your savings account?
They lend it to other people for things like houses or businesses.
Why is saving better than borrowing for things you want?
It lets you buy things without going into debt.
What kind of account is safe and earns interest?
A savings account.
What is the 3-jar system?
A way to split money into Spend, Save, and Share jars.
When should you use an emergency fund?
For things like broken glasses or sudden medical needs.
What is one benefit of putting money in a savings account instead of keeping it at home?
Your money is safe, insured, and earns interest.
What kind of goals do toys and snacks fall under?
Short term
What's one digital way kids can track savings with parental help?
Kid-friendly banking apps
How can you track progress toward a savings goal?
Use a chart or spreadsheet.
Should you use your emergency fund for a concert ticket?
No.
What is one way to increase the amount of interest you earn?
Save more money or keep it in the account longer.
What kind of goals include college or a car?
Long term.
What is the envelope system?
A way to save by dividing cash into envelopes for different needs.
What is one way to stay motivated to save?
Use a reward system
Is it okay to use emergency savings to buy candy?
No.
What happens if you withdraw money from your savings account too often?
You might earn less interest or face limits on withdrawals.
How does saving help during emergencies?
It gives you money to cover surprise expenses.
How is a savings account different from a checking account?
A savings account is for saving money and earns interest, while a checking account is for daily spending.
What does the âTâ in SMART goal stand for?
Time-bound or Timely
What is one benefit of having an emergency fund?
Peace of mind or being financially prepared.
What is the term for interest that is added to both your original amount and previous interest earned?
Compound interest.