Long-term savings strategies include:A.opening up a low-interest savings account.B.investing money in a 401(k) plan.C.setting aside money for an emergency.D.making a household budget each month
Question
Long-term savings strategies include:A.opening up a low-interest savings account.B.investing money in a 401(k) plan.C.setting aside money for an emergency.D.making a household budget each month
Solution
Long-term savings strategies indeed include all the options mentioned:
A. Opening up a low-interest savings account: This is a good strategy for long-term savings. Although the interest rate is low, it is a safe way to save money. The money in a savings account is less accessible, which can help prevent impulsive spending.
B. Investing money in a 401(k) plan: This is a retirement savings plan sponsored by an employer. It lets workers save and invest a piece of their paycheck before taxes are taken out. Taxes aren't paid until the money is withdrawn from the account. This is a very effective long-term savings strategy.
C. Setting aside money for an emergency: This is also a good long-term savings strategy. An emergency fund is a bank account with money set aside to cover large, unexpected expenses, such as a major auto repair, or an unexpected medical expense.
D. Making a household budget each month: This is a fundamental step in long-term savings. By making a budget, you can see where your money is going and identify areas where you can save more. A budget can help you achieve your long-term financial goals.
Similar Questions
A short-term savings strategy is most useful for people who want to:A.avoid putting their money into banks or credit unions.B.withdraw their savings to pay for unexpected expenses.C.increase the value of their investments as much as possible.D.create a household budget that uses all of their monthly income.
What is one major advantage of long-term savings strategies?A.They generally have the lowest available interest rates.B.They allow savings to grow significantly over time.C.They make more money available for nonessential purchases.D.They make it easier to pay for monthly expenses.
One example of a short-term savings strategy is:A.an employer-sponsored 401(k) plan.B.a high-risk stock market investment.C.a free checking account.D.a low-interest bank account.
You are developing a savings plan and using short-, medium-, and long-term goals to motivate you. Which represents possible goals from short-term to long-term? Save for…*1 pointRetirement, a house down payment, college tuitionA new cell phone, college tuition, a house down paymentA new cell phone, dinner with friends this weekend, a new bikeRetirement, college tuition, a vacation
If you are willing to accept some risk in your long-term savings strategy, you might want to invest in _____.A.savings accountsB.certificates of depositC.stocksD.bondsSUBMITarrow_backPREVIOUS
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