Savings Basics
The amount of money you earn from keeping money in a savings account.
interest
The recommended amount to have in an emergency fund?
3-6 months of expenses
A method used to solve a system of equations by adding or subtracting.
Elimination
The savings balance equation for someone starting with $100 and saving $50/month.
y = 50x + 100
A key benefit of using a savings account
security and earning interest
The first step in “paying yourself first.”
setting aside money for savings before spending
common reason why many Americans struggle financially.
lack of emergency savings
The number of solutions for parallel lines.
ABS
The number of months it takes to save $3000 with a monthly savings of $500.
6 months
The reason why a traditional savings account isn’t the best retirement option.
Low Interest Rates
This common type of expense should be prioritized in your budget.
Needs
This type of account is best for storing an emergency fund.
The type of system where two equations represent the same line.
Infinitely Many solutions
A financial benefit of using systems of equations.
comparing different savings plans
This financial term describes when someone spends their entire paycheck without saving.
Living paycheck-to-paycheck
The type of savings used for unexpected expenses.
Emergency Fund
One financial emergency that could require using your fund.
Medical bill or car repair
The step after isolating a variable in the substitution method.
substituting into the other equation
The reason why it’s important to track savings over time.
ensuring you reach financial goals
The budgeting rule that helps you allocate your income into needs, wants, and savings
50/30/20 rule
A reason why budgeting is essential.
financial stability and goal achievement
How having an emergency fund can impact credit card debt.
reducing reliance on credit cards for emergencies
The real-world meaning of the intersection of two savings equations.
two people have the same savings balance
The advantage of using a graph to represent a savings equation.
visually identifying trends and intersections