Strategies to Save

Which part of the 50/30/20 rule is dedicated to building an emergency fund and paying off debt?

• 50%

• 30%

• 20%

• 10%

What is the primary purpose of the 529 Plan?

• Saving for retirement

• Funding higher education expenses

• Buying a house

• Investing in the stock market

Which of the following is true about a 401(k) plan?

• It is a government-funded savings account

• It allows employees to save for retirement with potential employer contributions

• It can only be accessed at ago 70

• It is only available to self employed individuals

Which of the following would be considered an emergency fund expense?

• Buying a new phone

• Paying rent after losing your job

• Booking a vacation to Bali

• Upgrading your leased car because it's a new year

Which of the following people is using the 50/30/20 rule correctly?

• Jake spends 60% of income on rent and groceries, 30% on entertainment, and 10% on savings

• Maria puts 20% of her paycheck into a savings account, spends 50% on needs, and 30% on wants

• David saves 50% of his income, spends 30% on needs, and 20% on entertainment

• Sarah spends all her money each month and plans to save later.

Which of the following strategies is the most effective way to grow your retirement savings over time?

• Start saving early and contribute consistently to a 401(k) or similar account.

• Only contribute to a saving account when you receive a bonus or gift.

• Wait until you're older and earning more to start saving.

• Rely on winning the lottery to fund your retirement.