Saving Strategies
- Household furniture
- Christmas
- Birthday presents
- Travel
Finish this sentence: Never invest money that you're not okay with ______.
losing.
How old do you have to be to take money out of an IRA without being penalized?
a) 62 1/2
b) 59 1/2
c) 55
59 1/2
On average, which group tends to invest more conservatively?
a) Women
b) Men
a) Women
Financial advisors recommend a person has enough savings to cover at least _____________ months worth of bills in case of an emergency.
a) Three to Six
b) Six to Eight
c) 12 - 18
a) Three to Six
What will happen if you take money out of an IRA before you're 59 1/2?
You'll be charged a (very large) fee.
What is a stock?
A piece of a company that you own.
Describe how a 401K works.
You contribute a portion of your paycheck, and your employer matches it by a certain percentage. This money gets invested in the stock market.
Save your older self! The average retirement account only pays out about $____ per month.
a) $400
b) $550
c) $700
$400
Which of the 4 steps to creating a budget is MISSING?
Tracking spending, listing income, listing expenses, _______ ___ _______.
a) Complete tax forms
b) Balance the budget
c) Report the budget
b) Balance the budget!
Typically, you will need a co-signer to qualify for any type of loan before the age of:
a) 25
b) 18
c) 30
When a company borrows money from its investors instead of borrowing from a bank, we call this a ____.
Your friend decides to start investing for retirement. She's 17 years old. At her age, would you recommend more stocks or bonds for her? Why?
Stocks (so her money can grow faster)
Fun fact: you're better off hiring a professional advisor to manage your investment portfolio for you. Between 1992 - 2006, ___% of active traders lost money, and only 1% of them were profitable.
a) 60%
b) 50%
c) 80%
80%
How can you help prevent racking up too much student loan debt?
- Take Gen Eds at a cheaper college
- Don't change your major too much
- Live off campus if you can; cook at home
- Join the Armed Forces
- Work for an employer that pays for tuition
Financial experts recommend that you start saving for retirement at what age?
25
The prices of stocks are cheaper.
Which of these companies broke a record in 2018 when they became the first company in U.S. history to hit 1 trillion dollars in capital worth?
a) Amazon
b) Microsoft
c) Apple
c) Apple
Experts say that your car payment shouldn't be more than ____% of your total monthly income. Your house payment / rent shouldn't be more than _____% of your total monthly income.
a) 40%, 60%
b) 20%, 30%
c) 30%, 20%
20%, 30%
You decide you want to save $10,000 for your wedding next year. You have one year to save up. How much money would you need to save each month to reach this goal?
$833.33
The market is driven by 2 things: ____ & ____.
Fear & greed
Describe the difference between an a Traditional and Roth IRA.
Traditional = taxes come out when you retire
Roth = taxes come out immediately
The 401K killed the pension plan. Unfortunately, most Americans are unprepared for retirement. In fact, only ___% of individuals are actively participating in a 401K.
37%
Name something that having a budget can help you do.
- Help you keep track of how much debt you have.
- Provide you with financial stability.
- Help you reach your financial goals.