1) How is wealth defined? a) How much money you have in your Checking and Saving accounts b) All assets, including money in the bank + retirement c) Debts - Assets d) Assets - Debts 2) Which of the following is FALSE about saving and investing? a) Saving doesn't outpace inflation; investing usually does b) Saving is for short-term; investing is for the long-term c) Investing can either have low or high returns depending on the risk d) Saving has more risk; investing has less risk 3) Which is NOT a typical goal for a savings account? a) To create an emergency fund b) To save for a new car c) To pay for higher education d) To buy groceries for this week 4) What is a general rule of thumb on how much you should save? a) 5% of your income b) 20% of your income c) 10% of your income d) 30% of your income 5) What is a 529 account? a) A type of retirement account for teens & younger adults b) A tax exempt fund that lets your savings grow for school c) A special type of saving account for minors d) A special type of saving account for college students only 6) About how much should you save in an emergency fund? a) 1-3 months of living expenses b) 6-9 months of living expenses c) 3-6 months of living expenses d) 9-12 months of living expenses 7) What is a good strategy to help you save? a) 1st, spend money on all expenses; put the rest into saving b) Pay yourself first - set aside money for savings each month c) Tap into your savings on a regular basis to purchase small items, like snacks d) Keep your spending and saving money together in 1 account 8) Which of the following is FALSE about opening up a Roth IRA? a) A person of any age with earned income can open one b) Compounding occurs at a slower rate in a Roth IRA c) It can help teens start saving for retirement early d) You can put at most $6,000 in it every year 9) What is a reason for why so many Americans live paycheck-to-paycheck? a) Many people are paying themselves first and then spending b) Many people impulse shop c) Many people only buy what they NEED, not what they WANT d) Many people spend within their budget 10) What is a benefit of opening up a Health Savings Account (HSA)? a) The funds expire only every 5 years b) You can use the funds for retirement once you're 75 c) You earn interest, but it's taxed d) You can use pre-tax $ to pay for out-of-pocket costs 11) How does the 50-20-30 rule distribute your income? a) 50% expenses, 20% flexible spending, 30% saving b) 50% flexible spending, 20% saving, 30% expenses c) 50% expenses, 20% saving, 30% flexible spending d) 50% saving, 20% flexible spending, 30% expenses 12) How is compound interest different than simple interest? a) It is simple interest - interest earned on that interest b) It is simple interest + interest earned on that interest c) It is double the simple interest earned on an investment d) It's not different; they are one and the same 13) Which is TRUE about online saving accounts? a) Usually have higher interest rates than non-online accounts b) Online accounts are not FDIC insured c) They usually have higher costs compared to brick-and-mortar banks d) You can withdraw money an unlimited # of times 14) Assuming a rate of growth of 8%, in how many years will your $ double? a) 3 years b) 9 years c) 6 years d) 12 years 15) At what rate does your $ need to grow in order to double in 18 years? a) 2% b) 6% c) 4% d) 8% 16) Saving accounts differ from checking accounts in that... a) Money in a saving account can be used to fund a bank's loans b) Saving accounts come with more fees than checking accounts c) Saving accounts let you withdraw $ an unlimited # of times d) Checking accounts offer higher interest rates 17) What might you need to open a savings account? a) $1,000 b) The routing number to a checking account c) Your previous year's tax returns (or your parents') d) Identification 18) How does inflation impact the money in your savings account? a) Inflation decreases only the $ you earn in interest b) Inflation has no impact on $ in your savings account. c) Inflation increases the value of the money in your account d) The purchasing power of your money decreases over time 19) True or False: You need a checking account to open a savings account. a) True b) False 20) Which is TRUE about Certificates of Deposit (CDs)?  a) You agree to keep $ in a CD for an undetermined period of time b) The bank cannot loan out the $ in your CD c) You pay the bank some interest to keep $ in the CD d) The bank pays you interest in return

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