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Reflecting on… Supersize My Savings
LET’S PRACTICE
Name: _____________________________________________________________________________
Sweet Savings Solutions! 1. What are the two main reasons for keeping a savings account ? _ ______________________________________________________________________________ 2. What is liquidity and why is it important for an emergency savings fund? _ ______________________________________________________________________________ _ ______________________________________________________________________________ 3. Americans save very little money. What do many experts say is the reason for the decline in savings ? Explain. _ ______________________________________________________________________________ _ ______________________________________________________________________________ 4. Alexandra has been a freelance website designer for a couple of years. She has lots of tech industry clients. There’s a general sense within the tech industry that there could be a recession due to a drop in sales in the Asian markets. She is wondering if she should start what her Grandma Greta called “a rainy day fund” which is a savings account with enough money to get her through lean times. Review Alexandra’s monthly living expenses below and recommend an amount she should set aside in emergency savings. Tell what you included and excluded, and why. PRODUCT PREVIEW _ ______________________________________________________________________________ _ ______________________________________________________________________________ _ ______________________________________________________________________________ _ ______________________________________________________________________________ _ ______________________________________________________________________________ _ ______________________________________________________________________________ _ ______________________________________________________________________________ Rent & utilities $575 Car and auto insurance payment $275 Groceries $250 Restaurant meals $200 Spin class $60 Prepared dinner delivery 1x week $25 (x4) $100 GNO (Girls’ Night Out) $100 Student loan payment $165 Clothes shopping $275 IRA deposit $250 Credit card payments $250 Hair and Nails $200 Daily Latte $4.00 (x 30) $120 Netflix, Hulu & Amazon Prime $30 Car wash and detailing $50
THE 21st CENTURY STUDENT’S GUIDE TO FINANCIAL LITERACY 143
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