Savings Goals
The type of Savings goal that you can achieve within 6 months to 2 years.
Medium Term Goals
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?
I = P x R x T
The type of savings goal that you can achieve within 2 to 6 months.
Short Term Goal
Money saved to cover unexpected expenses is called ...
Emergency Fund
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.
The type of goal that takes 3 years or more to save for.
Long Term Goal
The act of putting money in savings before anything else on a payday.
Pay Yourself First
What is one DOWNSIDE of using a savings account instead of a checking account for your everyday transactions?
Your savings account has a limit of 6 withdrawals per month, while your checking account does not
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. What is a behavior change that help TJ save more money?
Spend less on snacks
Go to less games
Buy less video games
Pay yourself first
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. What is this called?
FDIC Insured
As a teenager opening a savings account, which two features are MOST important for you to have in your account? No interest rate and no monthly fees , No interest rate and no minimum balance requirement , No monthly fees and no minimum balance requirement , No monthly fee and no FDIC insurance
No monthly fees and no minimum balance requirement
What is a BENEFIT that a savings account has that a checking account does not?
Your savings account will earn interest, so the money in your account will grow without you doing anything
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
Interest that builds not only on the principal amount, but also on previous interest accrued.
Compound interest
The age you have to be to open your own savings account without a co-signer.
18