Strategy Beginner: Saving for Short, Mid and Long-Term Goals

Test your knowledge

Choose wisely. There is only one correct answer to each question.

0%
Keep studying!
Review your answers below to learn more.
1.
When establishing short-term savings goals, its a good idea to set up a separate account to save money for that goal.
Choose wisely. There is only one correct answer.
True. When you set up a separate account for a short-term savings goal, that goal is more likely to be met.
2.
When establishing a mid-term savings goal, you must be able to save all the money you need to achieve that goal.
Choose wisely. There is only one correct answer.
False. When establishing a mid-term savings goal, you can save all or part of the money you need to reach that goal.
3.
Retirement is an example of what type of goal?
Choose wisely. There is only one correct answer.
Long-term goal. Retirement is an example of a long-term goal that will take years to achieve.
4.
One long-term tool that employers offer to help save for retirement in a systematic way is a _______.
Choose wisely. There is only one correct answer.
401(k) plan. One long-term tool that employers offer to employees to help them save for retirement in a systematic way is a 401(k) plan.
5.
To fully fund an emergency fund, you need to save at least _______ months of living expenses.
Choose wisely. There is only one correct answer.
Three to six. To fully fund an emergency fund, you need to save at least this much -- some advisors suggest even more.