Saving Money Post Test

First Name

Last Name

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1. 45% of Americans have less than $1,000 saved for a(n) .

• Emergency
• Car
• Retirement fund
• New Smartphone

2. You'll have less freedom with your money if you . . .

• Invest in the stock market
• are paying for things in your past
• put money in a bank account
• make less than $35,000

3. Once you have a $500 emergency fund, you should . . .

• start putting it towards debt
• invest it in the stock market to grow your money
• save it until you have an emergency
• use the money to pay for health insurance

4. The first step you should take when you want to make a large purchase is . . .

• ask your parents to loan you the money with low interest
• get a new credit card
• decide how much you need to save and the time frame you want to save it in
• sell something and use the proceeds

5. The best way to build wealth is to start investing early. You should start investing money . . .

• once you have a fully funded emergency fund
• once you are out of college, living debt free, and have three to six months of living expenses saved
• when the stock market is performing really well
• as soon as you have extra cash

6. Why do some accounts, like savings accounts at your local bank, earn interest?

• because you deposit money, adding to your principal each month
• because the bank pays you to use your money
• because those accounts always have great interest rates
• because of inflation

7. It's not IF an emergency will happen, but . . .

• How
• Where
• When
• Why