Test Your Savings Knowledge

Taking the following savings quiz will reveal how much you understand about the realities of saving in America.






Q. What is the only free money for savings that is available to many Americans?
A. An employer’s match to a contributory workplace retirement plan such as a 401(k). Some employers, up to a certain level, will match each employee dollar contributed, thus guaranteeing at least a 100% yield on this savings.


Q. What percentage of elderly individuals depend entirely on Social Security payments for income?
A. In 2006, 25% of individuals age 65 and older relied 100% on Social Security payments for their income.

Q. What is the most effective way to save $100,000?
A. Tell your employer or bank to transfer, each month, as much of your paycheck as possible automatically to a savings or investment account. This is a far more reliable way to acquire $100,000 than to buy lottery tickets or wait for an insurance settlement.


Q. What represents the most effective way lower-income families have built assets over the past several decades?
A. Through buying a home and paying off the mortgage in full. Over four-fifths of the assets of lower-income homeowners represent home equity.