Saving Basics
What is one reason people save money?
For emergencies, big purchases, or college.
Which account should you use to buy lunch at school?
Checking account
What does “pay yourself first” mean?
Set aside money for savings before spending on anything else.
What does the “S” in SMART stand for?
Specific
Why is it important to start saving money when you’re young?
The earlier you start, the more time your money has to grow through interest.
What does FDIC insured mean?
The government protects up to $250,000 of your money if the bank fails.
Which account helps you earn interest?
Savings account
Why is “pay yourself first” effective?
It builds savings automatically and prevents overspending.
What does the “M” in SMART stand for?
Measurable
What is a short-term savings goal?
Something you plan to save for within a few months to a year (like new shoes or a concert).
Why is saving money early important?
You earn more over time and build good habits early.
You want to save for a trip in six months. Which account should you use?
Savings account
Why isn’t saving “what’s left over” the best method?
You might spend it all and have nothing left to save.
What does the “A” in SMART stand for?
Achievable
What is a long-term savings goal?
Something that takes several years to reach (like college or buying a car).
Why can you only withdraw from a savings account a few times each month?
To encourage saving and limit spending.
What happens if you withdraw from your savings more than 6 times per month?
You might pay a fee.
Give one example of how to pay yourself first.
Setting up automatic transfers to a savings account.
What does the “R” in SMART stand for?
Relevant
What can help you stay consistent with saving money?
Creating a budget or setting up automatic transfers to your savings account.
What’s the main difference between a savings and checking account?
Savings earns interest and is for future goals; checking is for everyday spending.
What does “online-only account” mean?
You manage it through an app or website instead of a physical bank.
If you earn $200 and save 20%, how much are you saving?
$40
What does the “T” in SMART stand for?
Time-bound
Why is it sometimes hard to save money?
Because people want to spend right away instead of waiting for future goals.