Quiz: Are you savings savvy?
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
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.
The U.S. personal savings rate was a mere 1 percent of income in which year?
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.
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.
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.
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