Question

Hal just turned 21 years old and will begin his junior year of college in the fall. A basic savings account is not the best place to put money that he is saving for which of these purposes?

A. Gas for his car
B. A trip for spring break his senior year
C. Groceries and utilities
D. Textbooks for the upcoming fall semester

Answer 1

A trip during spring break his senior year

Answer 2

B. A trip for spring break his senior year

Explanation:

A basic savings account is not the best place to put money that he is saving for - A trip for spring break his senior year.

This trip is a long term planning and Hal needs to save for it. So, a general and daily savings account is not advisable because it will be accessed throughout the studies almost 4 to 5 times a month, for groceries, gas and other things.

In this way Hal cannot save enough for his trip as all the money will be consumed in other things. So, he needs separate account for trip savings.