Lesson 10
Scenario 1
Aiden’s car is 12 years old and he’s worried it might break down, so he’s trying to save three months of expenses for unexpected repairs, while also saving for a new car. What are the best savings strategies for Aiden so he can keep his money accessible for repairs, but also save for a new car? It would probably be best for Aiden to get a Savings Account, since there's no restriction on money withdrawal or minimum balances.
Scenario 2
Madeline’s friends invited her to go to Cancun next year for vacation. She really wants to go, but she’s not sure if she can afford the $1,000 trip. She has $500 saved in her dresser and has one year to save the rest, but she’s not sure where to keep her money so she can maximize her savings. What is the best savings strategy for Madeline and why? Madeline would be best off getting a Certificate of Deposit. With higher interest rates and a fixed time that it has to spend in the bank, she could leave it for a full year while working for the other $500.
Scenario 3
Scott is a freshman in high school and plans to attend college someday. His grandparents gave him $5,000 to start his college savings, but he’s not sure where he should keep this money until he’s ready to go to college. What would be the best savings strategy for him? Scott should put his college money into a 529 Savings Account.
Aiden’s car is 12 years old and he’s worried it might break down, so he’s trying to save three months of expenses for unexpected repairs, while also saving for a new car. What are the best savings strategies for Aiden so he can keep his money accessible for repairs, but also save for a new car? It would probably be best for Aiden to get a Savings Account, since there's no restriction on money withdrawal or minimum balances.
Scenario 2
Madeline’s friends invited her to go to Cancun next year for vacation. She really wants to go, but she’s not sure if she can afford the $1,000 trip. She has $500 saved in her dresser and has one year to save the rest, but she’s not sure where to keep her money so she can maximize her savings. What is the best savings strategy for Madeline and why? Madeline would be best off getting a Certificate of Deposit. With higher interest rates and a fixed time that it has to spend in the bank, she could leave it for a full year while working for the other $500.
Scenario 3
Scott is a freshman in high school and plans to attend college someday. His grandparents gave him $5,000 to start his college savings, but he’s not sure where he should keep this money until he’s ready to go to college. What would be the best savings strategy for him? Scott should put his college money into a 529 Savings Account.