“I want to save more money this year.” Millions of Americans make this resolution every year. In fact, behind losing weight, saving more money is the next most chosen resolution. Why? Because honestly, Americans are awful at managing and saving money. Take a look at the numbers: 3.9 million homes were foreclosed on during the mortgage crisis, about $1.1 trillion is owed in student loan debt and we’ve racked up about $845 billion in credit card debt.
So, yes, we could use a little help. FNB Fox Valley is providing the first step: a quiz to see just how great of a saver you are. The answers are below, but no cheating please; taking the easy way out is how we got into this mess in the first place.
- How much of each paycheck should you be putting into savings? A. 5-8% B. 8-10% C. 10-12% D. 12-15%
- True or False: a traditional IRA taxes your withdrawals, while a Roth IRA taxes your deposits. True
- Are contributions to a traditional 401(k) deducted from your salary before or after taxes? A. Before B. After
- Who will have more money in their retirement account at age 65: Jack, who invests $100 a month starting at age 25, or Jill who invests $200 a month starting at age 35? A. Jack B. Jill
- Your get your paycheck, what’s the first transaction you should make? A. Rent/Mortgage B. A transfer from your checking account to your savings account C. Utilities D. An expensive surf and turf dinner
- Which of the following saves you the most money when paying back your credit card debt: A. Making payments larger than the minimum B. Making only minimum payments C. Switching off making minimum and larger payments every month D. Sitting in a corner and crying.
- Congratulations! You just got that promotion at work and it came with a raise! What should you do with the extra money? A. Upgrade your lifestyle- go on, you’ve earned it! B. Stick to your budget and use the extra money to pay off high-interest credit card debt and boost your savings C. Hide it in a shoebox behind a painting in your office.
- You have $25,000 you need to stow away to make a down payment on your new home. Where’s the safest place to keep it? A. Stocks B. Mutual Funds C. A Money Market account D. Your FNB savings account
How did you do? If you got 6-8 questions correct, nice work! If you got less than six correct, at least now you know what you have to work on when it comes to saving money. If you need help, FNB Fox Valley will gladly offer to help any way we can.
Answers: 1. D 2. True 3. A 4. A 5. B 6. A 7. B 8. D