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Quiz: Are you savings savvy?
by Staff
Putting aside money for a rainy day doesn't come natural many of us. See how much you know about accumulating a nest egg.

Which of these mottos is most likely to lead to saving?

  • Buy now, pay later.
  • Save now, buy later.
  • Splurge now, worry later.

If you come into money you weren’t expecting, what should you do with it?

  • save it
  • splurge on something you really want
  • both

Which of the following is the best strategy for accumulating savings?

  • Keep all your savings in a single savings account.
  • Keep all your savings in your checking account until you can invest it.
  • Keep your savings in several savings accounts.

True or false: Surveys show that consumers are happier with purchases when they save for them in advance rather than buying on impulse.

  • true
  • false

The U.S. personal savings rate was a mere 1 percent of income in which year?

  • 1975
  • 1995
  • 2005

According to the Department of Commerce, what was the U.S. personal savings rate by 2011?

  • barely 1 percent of Americans' income
  • about 5 percent of Americans' income
  • about 25 percent of Americans' income

About what percentage of Americans contribute nothing at all to retirement savings?

  • 6 percent
  • 11 percent
  • 36 percent

If you want to build up savings, what’s the best goal to give yourself?

  • to save as much as you possibly can
  • to save whenever you have any extra money, even a few dollars
  • to save a reasonable amount on a regular basis

True or false: Enrolling in a 401(k) plan is not a very good way to save.

  • true
  • false

If you are carrying debt, what’s your best savings strategy?

  • Use all extra income to pay off your debt as fast as possible.
  • Save up, then pay off your debt all at once.
  • Pay down debt and put some money into savings.

True or false: You always have to wait until age 65 to withdraw money from your 401(k) plan without penalty.

  • true
  • false

What is one of the most effective things you can do to accumulate savings?

  • Put all your savings into the stock market.
  • Make your saving automatic.
  • Invest in gold.

Why can paying cash for purchases help you to save?

  • You appreciate that you’re spending real money.
  • Most stores offer cash discounts.
  • Cash is protected from inflation.

What is the typical interest rate on credit card debt?

  • 3 percent
  • 7 percent
  • 15 percent

Which of these is a good savings strategy?

  • Make your funds difficult to access.
  • Keep all your savings on hand for emergencies.
  • Maintain a large amount of cash in a safe deposit box.

As of 2011, what is the typical interest paid on a savings account?

  • less than 1 percent
  • about 5 percent
  • nearly 7.5 percent

What’s the best time to start saving for retirement?

  • when you reach age 55
  • when your income reaches twice the level of your fixed expenses
  • when you begin working

True or false: Paying more than you need to toward your mortgage each month can save you big money.

  • true
  • false

Which of these can make it easier to manage your savings?

  • multiple credit cards
  • online banking
  • mortgage insurance

Which of these can be a useful tool for accumulating savings?

  • a home safe
  • purchasing lottery tickets every week
  • a househould budget