column 1
Which list includes the most important factors to consider when opening a savings account?
The fees, the interest rates, and the minimum deposit to open the account
The fees, the interest rates, and the bank’s brand recognition
The fees, which bank your friend uses, and the minimum deposit to open the account
The fees, which bank your friend uses, and the bank’s brand recognition
The fees, the interest rates, and the minimum deposit to open the account
What would be a good time to spend money from your Emergency Fund?
You lose your job but still have bills to pay
Your friend tells you that you should buy as much Bitcoin as possible
Your favorite artist releases a new album and you just have to buy it
Your friends are going on an expensive trip an you would like to go with them
You lose your job but still have bills to pay
Which of the following individuals is the wealthiest?
Maria owns a $15,000 car and owes $45,000 in student loan debt.
Keith owns a $500,000 home and has a $460,000 mortgage.
Elyse owns a $25,000 car that is entirely paid off but has $10,000 in credit card debt.
Karina owns a $50,000 car and has $5000 remaining on her car loan.
Karina owns a $50,000 car and has $5000 remaining on her car loan.
Jeremy is a 17-year-old junior in high school and just started his first job. He wants to open a savings account. Which of these will he need to bring to the local bank branch in order to start an account?
A letter from his school
A letter from his parents
An adult cosigner because he is under 18
An adult cosigner because he is still a student
An adult cosigner because he is under 18
Which of the following statements about banks is FALSE?
If it is FDIC-insured, your money is safe even if the bank fails
Many banks pay interest for the money you deposit with them
Historically, savings accounts earn higher returns than investments in the stock market
Money in a bank is usually easy to access via ATM, debit card or check
Historically, savings accounts earn higher returns than investments in the stock market
Assume Sid the Saver is earning 0.5% interest on his savings account while inflation is running 2% per year. Which statement below is TRUE?
Sid's purchasing power is increasing by 0.5% per year
Sid's purchasing power is increasing by 2.0% per year
Sid's purchasing power is decreasing by 1.5% per year
Sid's purchasing power is decreasing by 2.0% per year
Sid's purchasing power is decreasing by 1.5% per year
You are 18 years old, opening your first savings account, and are considering three options
SEE PHOTO IN SLIDE
All three have fees competitive with other banks. Which bank is the best option? *
Bank A
Bank B
Bank C
All 3 banks are equally good options
Bank B
Joelle wants to have an emergency fund to cover 6 months of her expenses. Her monthly gross pay is $4,000 and her monthly expenses are $2,000. If she plans to save 10% of her gross pay each month, how long will it take her to build her emergency fund?
3 months
9 months
24 months
30 months
30 months
Which of the following statements is TRUE?
The interest rate on your savings account will remain the same as long as you keep the account open.
You can choose the interest rate on your savings account, but only once per year.
The interest rate on your savings account will vary over time and be set by the bank.
The interest rate on your savings account will vary over time and be set by the government.
The interest rate on your savings account will vary over time and be set by the bank.
Juan saved $1,000 from his summer job cleaning pools. Which of these savings vehicles would work best for him if he doesn't need access to the money for a number of years AND wanted to earn the highest interest rate?
Regular savings account
Money Market account
Checking account
Certificate of Deposit
Certificate of Deposit
You are comparing two savings accounts based on the interest you would earn and the fees they charge. Assuming you have a savings account with an average balance of $500, which combination of interest rates and fees are a better deal? (Hint: Using a one year period, determine the balance that you would have at Bank A and Bank B).
Bank A offers you a savings account with a 10% annual interest rate and $5/month in fees
Bank B offers you a savings account with 2% annual interest rate and no fees
The two banks deals are equivalent
Trick question -- it's a bad idea to open a savings account with just $500
Bank B offers you a savings account with 2% annual interest rate and no fees
If you deposit $200 into a CD (Certificate of Deposit) with an interest rate of 1% for 3 years, how much simple interest will you earn after THREE years?
$1
$5
$6
$25
$6
The highest yielding savings accounts are paying historically low interest rates, so Maria is only able to get a 1% annual interest rate for her savings account. Assuming interest rates do not change, use the Rule of 72 to approximate how many years it will take for her to DOUBLE her money in this account?
1 year
5 years
10 years
72 years
72 years
If you used the 50-30-20 rule of budgeting, how much money would you be saving?
20%
30%
50%
100%
20%
Zola just secured her first job after college, and she's heard that it's important to start investing for her retirement. She can afford to put 5% of her monthly salary toward retirement. What type of account should she choose for this goal?
IRA
CD
MMA
HSA
IRA
When a bank says their savings account earns 1% interest, that typically means you will earn 1% interest over what period of time?
Daily
Monthly
Quarterly (three months)
Annually (a year)
Annually (a year)
You are developing a savings plan and using short-, medium- and long-term goals to motivate you. Which of the following might you pick as the most long-term goal?
Saving for retirement
Saving for a down payment on a home
Saving to buy a car
Saving to go on vacation
Saving for retirement
Malcolm is working full-time and wants to make sure he's saving strategically for four specific goals: an emergency fund ($5000), a flight home to see his parents for the holidays ($450), a downpayment on a new car ($3000), and his retirement (2% of his monthly take-home pay). What's his best strategy?
Put as much as he can every month into an investment, like shares of a company, so his money grows quickly
Keep all the money in his checking account so that he can spend it in the different categories as needed
Set up 3 separate savings accounts for the first 3 goals and a retirement investment for the 4th
Set up 4 separate savings accounts
Set up 3 separate savings accounts for the first 3 goals and a retirement investment for the 4th
Which of the following is an effective strategy for personal saving?
Wait until the end of the month and save whatever is left in your checking account
Save a certain percentage of each paycheck and deposit it directly in a savings account
Cover all of your wants and needs and save whatever is left over
Take out a payday loan so you can save before you receive your paycheck
Save a certain percentage of each paycheck and deposit it directly in a savings account
Which of the following is an example of delayed gratification as it pertains to saving?
Using your credit card to afford a fancy vacation now, but not feeling happy about it until you pay off the entire debt in 5 years
Not buying a muffin or breakfast sandwich every morning during the workweek so you can buy a really nice breakfast for your family once every few weeks
Postponing your mall shopping trip to Sunday, rather than Saturday, so there are fewer crowds
Using your credit card so that you can get points on your purchases
Not buying a muffin or breakfast sandwich every morning during the workweek so you can buy a really nice breakfast for your family once every few weeks
You open a new bank account at Eastside Savings. You see FDIC stickers around the bank, and the teller specifically mentions that Eastside Savings is "FDIC insured". A few months later, you hear on the radio that Eastside Savings is struggling to stay in business. Your savings balance is $500. What would happen to that money if Eastside Savings failed?
You would receive all the money you have deposited at Eastside Savings since FDIC insurance covers accounts up to $250,000.
You could lose $250 since FDIC insurance only covers 50% of the money you have deposited.
You would lose all of your money.
You would receive $250,000 since FDIC insurance provides each account at the bank with $250,000 regardless of how much they have deposited.
You would receive all the money you have deposited at Eastside Savings since FDIC insurance covers accounts up to $250,000.
All of the following are good strategies to develop savings habits EXCEPT...
Start with a small goal and gradually get more ambitious
Take a percentage of your paycheck and deposit it directly into a savings account
Avoid spending money that you don't have and running up credit card debt
Request to be paid in cash so you can save a certain percentage of your money in a shoebox in your room every month
Request to be paid in cash so you can save a certain percentage of your money in a shoebox in your room every month
Which of these statements about savings is incorrect?
People often believe they are saving when they buy products at a listed discount, even if they didn't need the product in the first place
It is extremely difficult to open a savings account, as you typically need at least $10,000 for your initial deposit
Without a vehicle to save (like a savings account), it's much easier to spend and harder to keep track of finances
Billions of dollars is spent on marketing to persuade consumers to spend money instead of saving it
It is extremely difficult to open a savings account, as you typically need at least $10,000 for your initial deposit
You want to take earnings from your part-time job to pay for a new laptop. Your monthly take-home pay is $500 and the laptop costs $1,200. What percentage of your pay do you need to save in order to buy the laptop in 12 months?
5%
10%
15%
20%
20%
Stanley deposits $1,000 into a savings account that pays 1% interest per year. At the end of the first year, he's earned $10 in interest and there is $1,010 in the account. If the account has simple interest, the 1% interest for year two would be based off ____________. If the account has compounding interest, the 1% interest for year two would be based off ________________.(NOTE: The first choice goes in the first blank, the second choice goes in the second blank).
The original deposit ($1,000); The year one account balance ($1,010)
The original deposit ($1,000); The year one interest ($10)
The year one account balance ($1,010); The year one interest ($10)
The year one account balance ($1,010); The original deposit ($1,000)
The original deposit ($1,000); The year one account balance ($1,010)