Saving | Practical Money Skills

Saving

Saving is essential to financial health and building your long-term wealth. It is important to save early in life and often. Regardless of your age, you should save a percentage every time you receive money, whether it’s from your income or a monetary gift.

A good rule of thumb is to try to save 10 to 20 percent of your net income. 

The everyday decisions you make about money can have a lifelong impact. Saving allows you the freedom and flexibility to fulfill your goals and helps you develop good personal finance habits.

Not a natural saver? No problem. Getting started is easy. There are many ways to scale back your spending and various resources to help. Start small and see how quickly your money can grow.

First, let’s test your saving knowledge.

line segement
Quick Quiz

Whether you’re a novice or an expert, this quiz gives you the opportunity to test your knowledge, determine areas for improvement and learn helpful tips and resources to guide you through the process of becoming a savvy saver. Take the quiz to help evaluate your saving habits.

1
An emergency fund is:
A
Insurance that pays medical expenses
B
An evacuation plan
C
Money saved for unexpected expenses
D
A fund for dining out
Correct!

An emergency fund helps you save for unexpected expenses such as medical or home and auto repair.

Not quite.

An emergency fund is money saved for unexpected expenses such as medical or home and auto repair.

2
Ideally, how much should you save in your emergency fund?
A
One week's pay
B
One month's pay
C
Enough to pay rent for two months
D
Enough to pay three to six months' expenses
Correct!

You should save enough in your emergency fund to pay three to six months’ expenses.

Not quite.

You should have enough money in your emergency fund to sustain you for three to six months.

3
What is true about savings accounts?
A
They pay the highest interest rates of any account.
B
They allow you to deposit and withdraw money and earn interest.
C
Their interest earnings are not taxable.
D
All of the above
Correct!

Savings accounts allow you to deposit and withdraw funds and earn interest.

Not quite.

Savings accounts allow you to deposit and withdraw funds and earn interest.

4
You should consistently save at least ___ of your income.
A
10%
B
4%
C
5%
D
30%
Correct!

Saving at least 10 percent of your income each month gives you a safety net for retirement and other unexpected expenses.

Not quite.

You should consistently save at least 10 percent of your income.

Your Score

Nice job!

You’re a savvy saver — check out these tips to stay successful.

Nice job!

You’re on the path to becoming a savvy saver — check out these resources to become even better at saving.

Too Bad!

You’re a newbie with lots of saving potential — check out these resources to become a great saver.

Back to Results
Test Your Saving Savvy

5Questions

Share

Featured

Calculators
Lunch Tracker

Do you know how much you spend on lunch? You might be surprised. Use this calculator to track your spending, adjust your habits and save money.

Calculate Now
Calculators
How Will My Savings Grow?

Compound interest can increase your savings and deposits. Determine how your savings will grow by analyzing your financial habits.

Calculate Now
Calculators
Do I Have Enough Retirement Money?

It's never too early to start saving for retirement. Calculate your retirement expenses to determine how much you'll need.

Calculate Now
Calculators
Save A Million

Striving to become a millionaire? Determine how much you'll need to save every month to meet your goal.

Calculate Now