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2.2 Why We Save (Due 9/14/22 SOC)

Last updated 12 months ago
22 questions
Note from the author:

In this lesson, you will learn to:

  • Identify everyday obstacles Americans experience when trying to save money
  • Understand why it is important to maintain an emergency fund
  • Describe their own savings goals as well as big picture reasons to save, such as for college or retirement
  • Estimate the cost of medium- and long-term goals and devise smaller, periodic savings goals to reach them

In this lesson, you will learn to:

  • Identify everyday obstacles Americans experience when trying to save money
  • Understand why it is important to maintain an emergency fund
  • Describe their own savings goals as well as big picture reasons to save, such as for college or retirement
  • Estimate the cost of medium- and long-term goals and devise smaller, periodic savings goals to reach them
Required
25
Brainstorm FIVE reasons why it is sometimes difficult to save money. UCS

1._______
2._______
3._______
4._______
5._______

Five Reasons We Impulse Buy

Even if you have the best intentions of saving money, it can often be hard to follow through. This article outlines why it’s so easy to impulse shop instead of saving to meet our goals. Answer the questions that follow.
Required
10
Which 2 reasons that people impulse shop apply to you or you think might apply to you? UCS

1._______

2._______
Required
10

Describe an example of a time when you experienced one of these shopping impulses. UCS

Required
10
Name three strategies you could use to fight the urge to impulse buy. UCS
1._______
2._______
3._______

Is Social Media Ruining Your Finances? &

Keeping Up with the Joneses

Read this article about the impact of social media on spending habits and then view the cartoon that follows. Use both resources to answer the questions.
Required
10

In what ways can social media motivate people to spend more money?

Required
10

“FOMO” and “Keeping up with the Joneses” are two phrases with a similar meaning. What do these phrases mean, and how does social media contribute to them?

Required
10

How does “FOMO” impact one’s ability to save money for short- or long-term goals?

Living Paycheck to Paycheck

Watch this video and explain what causes people to live paycheck to paycheck, without having money leftover to save.
Required
20

After watching the video, what causes people to live paycheck to paycheck, without having money leftover to save?

3 Things You Need to Know About an Emergency Fund

One of your first saving goals should be establishing an emergency fund. As you watch this video, answer these questions.
Required
10

Why do you think they recommend saving 3-6 months’ of expenses in your emergency fund?

Required
10

Why shouldn’t you keep your emergency fund money in your checking account?

Day 2 9/13/22

Planning for Retirement in Your 20s

It is never too early to start saving (or, even better, investing) for your retirement. As you watch this video, answer these questions.
Required
20

Without words, describe what you think retirement looks like?

Required
10

Why does the speaker recommend prioritizing investing for retirement over paying off Federal student loans? UCS

Required
10

Does it surprise you the speaker recommends putting 80-100% of your retirement savings in investments? Why or why not? UCS

Why Your Kid Needs a Roth IRA

Investing for retirement once you start your first full-time job is one thing, but you can technically start with a Roth IRA even sooner. Read this article to answer the question on the right:
Required
5

Would YOU be eligible to open a Roth IRA this year? Why or why not? UCS

Required
20
Name two reasons that putting extra money from a part-time job into a Roth IRA might be MORE beneficial than putting it into a savings account. UCS

1. _______
2. _______

How To Reduce Student Loan Debt While You’re in School

Other than tip 1 (Take Time to Save Before Going to College), skim this article and find another tip that relates to SAVING MONEY as a way to reduce college costs. Describe the tip in your own words.
Required
10

Describe the tip in your own words.

Benefits of a Health Savings Account

Though you’re probably not eligible now, your future self may want to investigate whether a Health Savings Account is a good opportunity for you to save some money. Watch this video and record all the potential benefits of an HSA as they’re mentioned. What’s one potential downside of an HSA?
Required
20
What are two potential benefits of having an HSA?
1._______
2._______
Required
10

A common trade-off of having access to an HSA is having to enroll in a high deductible health insurance plan, meaning you’ll be responsible for a greater percentage of your healthcare expenses before insurance kicks in. What is a potential downside of this tradeoff?

Is Your Piggy Bank a Source of Happiness?

Read this brief article about the effects of saving on happiness, then answer the question on the right.
Required
10

Given what you’ve learned in this lesson overall, why do you think higher rates of saving equate to greater happiness?

Required
3

According to experts, your emergency fund should include enough money to cover your expenses for…

Required
3

Which of the following is a good reason to start saving for retirement in your early 20s?

Required
3

Which of these is a specialized account used exclusively for saving money for future health expenses?