Savings Test Review

Front

What should you consider when choosing a savings account?

Back

How much are the interest rate and fees?

Front

"Pay yourself first" means...

Back

Any time you get paid, set aside some portion to save before you do any spending

Front

Which of the following is an example of a long-term savings goal? Saving for dinner and a movie, Saving for a new backpack for school, Saving for a new pair of crocs, Saving for a car in five years

Back

Saving for a car in five years

Front

Which behavior change is MOST likely to help Arnold save more money? Options: Spend less time cutting grass and more time saving money, Ask his parents for an allowance and try to save that money instead, Spend money on a better lawn mower so he can cut more grass, Before he spends, set aside $5 to save out of every $20 payment

Back

Before he spends, set aside $5 to save out of every $20 payment

Front

How much does Paul need to save per month for a $600 trip to Disney World in 10 months?

Back

$60 per month

Front

Doris makes $300 per month by babysitting her neighbor's kids after school. She wants to buy her dad something really special for his birthday, which is 10 months away. Which strategy will work best to make sure she has enough saved by then? Options: Wait until the month of her dad's birthday and worry about it then. Save $300 every month without spending anything on herself. Apply for a credit card so she can charge the gift now and pay in 10 months. Figure out how much the gift will cost and divide that number by 10 and save that amount each month.

Back

Figure out how much the gift will cost and divide that number by 10 and save that amount each month.

Front

Why do you want to make sure your bank is FDIC insured?

Back

If you have money in your checking or savings account and the bank goes out of business, you are guaranteed to get your money back up to a certain limit.

Front

What is the principal in an interest calculation?

Back

The original amount of money deposited

Front

What is a DISADVANTAGE of using a savings account instead of a checking account?

Back

Your savings account has a limit of 6 withdrawals per month, while your checking account does not.

Front

What is the formula for calculating simple interest?

Back

Interest = Principal x Rate x Time