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Financial Knowledge Assessment: Q13A

13.  Which of the following is a good strategy for saving money?

  • A.  Refrain from aggressively saving early on, because you know you will be able to save more down the road.
  • B.  Save whatever money you can from your net monthly income.
  • C.  Pay into your savings account like it was a monthly bill.
  • D.  None of the above.

Explanation:  The correct answer is “C.  Pay into your saving account like it was a monthly bill.”  Saving money is about daily discipline.  Every day Marines and Sailors, like other Americans, are bombarded with advertisements to buy things.  And while many of these possessions, such as a new large television, gaming system, or a new car, could bring you enjoyment for a while, eventually you’ll have to face the consequences of your decisions, especially if you have purchased all of these items with money you don’t have, such as through credit cards and loans.  This means that Marines and Sailors must maintain a disciplined approach to personal finance, constantly evaluating whether certain purchases are necessary, and religiously forcing oneself to save money as if it were another bill.  If done well, Marines and Sailors will be impressed with how easily a large amount of money was saved over time, with very little impact on their quality of life.  “A” is not correct, because even though earning potentially will likely increase over time, this doesn’t mean saving now as little to no benefit.  Any time is a good time to save.  “B” is not the best answer, because it does not reflect the disciplined practice that is most likely to cause you to save monthly, which is treating an amount to save per month as if it were a monthly bill.

Continue to Question 14