Saving Money and Financial Planning
This worksheet helps Grade 11 students understand key concepts in saving money, including interest, budgeting, and financial goal setting.
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Saving Money and Financial Planning
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Read each question carefully and provide your best answer. Show your work where applicable.
1. Which of the following is generally considered the most liquid asset for saving?
Real Estate
Savings Account
Stocks
Certificates of Deposit (CDs)
2. What is the primary benefit of compound interest?
It allows you to withdraw money freely.
You earn interest only on your initial deposit.
You earn interest on both your initial deposit and accumulated interest.
It guarantees a high return on investment.
3. A personal is a detailed plan for how you will spend and save your money.
4. The "Rule of 72" estimates the number of years it takes for an investment to at a given annual rate of return.
5. An emergency fund should ideally cover to months of living expenses.
6. Explain the difference between saving and investing.
7. List three common financial goals that require saving money.
8. All savings accounts offer the same interest rate.
True
False
9. Inflation can reduce the purchasing power of money saved over time.
True
False
10. Sarah wants to save $5,000 for a down payment on a car in 2 years. If she can earn an average annual interest rate of 3% compounded annually, how much does she need to deposit initially (rounded to the nearest dollar)? Use the formula A = P(1 + r)^t.
11. David saves $100 per month. If his monthly expenses are $800 and his monthly income is $1,200, what percentage of his income is he saving?