Why Saving is Important
What is an example of a long-term goal?
House, Car, Property, other large purchases that most often require a loan or large amounts of cash
When saving money, where should you put it?
Savings account with a bank
What is a benefit of having a savings account?
Earn interest on your money as it sits
How old do you have to be to open a savings account at a bank?
18
What is the difference between simple and compound interest?
Simple interest multiples by the rate without adding onto whats there, compound interest adds onto the the principal and the interest already earned
What are some examples of reasons to have an emergency fund?
Healthcare needs, stolen items, loss of job
Why is it sometimes difficult to save money?
Discipline, desires, wants vs needs
What is a downside to a savings account compared to a checking account?
Savings accounts may only allow a certain number of withdrawls each month
Can you open a savings account when you're under 18?
Yes, with the help of an adult
If I have an account with $100 that earns 5% simple interest annually, how much money will I have after 1 year?
$105
What does it mean to 'pay yourself first'?
Putting money into a saving's account
A school trip is a year away, and you need to pay $120 in order to go. How much do you need to save each month to afford it?
$12
You want to buy your mom a birthday present. Which account does this come from?
Checking
How can you deposit money into your account?
Bring cash to the bank or ATM, checks, mobile deposits
What is the formula for simple interest?
I=Prt
What is the recommended percentage of your income you should put into your savings account?
20%
A new car you want is $900. You will need it by the time you are 16, which is 9 months away. How much money do you need to save per week to afford it?
$25
What does it mean when your bank is FDIC insured?
Your money is safe, even if the bank goes out of business.
When is the best time to open a savings account?
ASAP
What is the formula for compound interest?
I=P(1+r)^t
Why is saving important?
Emergencies, big purchases, never being broke
Mr. Johnson want to buy a new pair of shoes that come out in two months. They are $250. About how much money does he need to set aside each day to afford them?
$4.50
What are the three things you should ask your banker before opening a savings account with them?
Is it insured?
What is the interest rate?
What is the minimum balance?
(Are there fees if I go under that balance?)
As a kid, what are the three things you need to bring in order to open a savings account?
An adult, proof of mailing address, form of identification
If I have an account that has $5,000 and it earns 5% interest compounded annually, how much money will I have after 5 years?
$6381