Saving · Module 2 of 9
Money with a name on it
Give your savings a job, plan for more than one goal at a time, and work backward from a date to a monthly amount.
Key terms in Money with a name on it
- Savings goal
A savings goal is the amount of money a person plans to put aside for a specific purpose, such as a purchase or a future need. It pairs a target amount with a reason for saving, which makes progress measurable. Goals are commonly described by how far away they are, from near-term purchases to long-range plans.
Source: Consumer Financial Protection Bureau, Financial terms glossary
- CD ladder
A CD ladder is an arrangement in which a sum placed in certificates of deposit is divided among several CDs that mature on different dates. Because the maturity dates are staggered, a portion of the money becomes available at regular intervals instead of all at once. FINRA describes it as a way to add flexibility while still using the fixed terms that CDs offer.
Source: Financial Industry Regulatory Authority, Bank Products: Certificates of Deposit (CDs)
- Early withdrawal penalty
An early withdrawal penalty is a fee a bank charges when a customer takes money out of a certificate of deposit before its term ends. It often comes out of the interest earned and can sometimes reach into the original deposit. The size of the penalty is set by each bank and disclosed with the CD, alongside the term length and the interest rate.
Source: Consumer Financial Protection Bureau, What is a certificate of deposit (CD)?
Every term on Lever is in the money glossary.
About this module
Money with a name on it is part of Saving, one of 15 subjects in Lever. It’s a short run of 9 lessons, about 23 minutes in all, so you can finish it in one sitting.
Every lesson takes one idea at a time. You read it with the math worked out step by step, answer a question that puts it to use, then see why the right answer is right and why the others aren’t.
It’s for anyone who was never taught this, and you don’t need to know anything first. Every lesson is free. Lever works out what you already know, so you can start here or let your path bring you to it.
More in Saving
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1
The fund that catches you
Build a small emergency fund first, know what really counts as an emergency, and refill it after you use it.
5 lessons -
3
So it doesn't depend on a good month
Keep saving even when your income goes up and down, with an honest average and a plan that runs on its own.
5 lessons -
4
Three ways to divide a month
Three popular ways to budget, including 50/30/20 and envelopes, and how to pick the one you’ll actually stick with.
6 lessons -
5
Running a tanda
How savings circles like tandas work, what your turn in line is worth, and what to check before you join one.
8 lessons -
6
Money sent home
The hidden costs of sending money abroad, and how to get more of it to the people who need it.
6 lessons -
7
The money that shows up all at once
Make the most of a bonus or refund: decide what it’s for before it arrives, and when paying off debt is the better move.
5 lessons -
8
When your own money buys less each month
Why money that just sits loses value when prices rise, and the one comparison your bank’s ads never show you.
5 lessons -
9
What the app does with your spare change
How round-up saving apps really work, who is holding your money, and the fee that can wipe out what you saved.
5 lessons
Try this module
It’s part of Saving. Lever will bring it to you when you’re ready, or you can go straight there.