Financial Basics
This is a savings account specifically set up for unexpected expenses.
What is an emergency fund?
Interest paid on previously earned interest is known as this.
What is compound interest?
45% of Americans have less than $1,000 saved for this type of fund.
What is an emergency fund?
The two key components to wealth building.
What are discipline and time?
Before making a purchase, this is the most important rule to follow.
What is live on less than you make?
This financial concept explains why money is worth more today than in the future.
What is the time value of money?
This financial institution provides banking services to its members.
What is a credit union?
Once you have a $500 emergency fund, you should do this.
What is save it until an emergency happens?
One of the main reasons we build wealth is to do this.
What is give to those in need?
These are the 5 Foundations of personal finance.
What are: Save a $500 emergency fund, Get out of debt, Pay cash for a car, Pay cash for college, Build wealth and give?
A savings option that earns a fixed interest rate for a specified period.
What is a Certificate of Deposit (CD)?
The act of setting money aside with the expectation of additional profit and risk.
What is investing?
It’s not IF an emergency will happen, but this.
What is When?
The best way to build wealth is to start investing at this time.
What is after becoming debt-free and saving 3-6 months of expenses?
Rank these accounts from highest to lowest interest: Savings, Certificate of Deposit, Money Market.
What is: Certificate of Deposit, Money Market, Savings?
This term refers to the percentage of the principal charged by a lender for borrowing money.
What is an interest rate?
This account type allows you to deposit money, earn interest, and withdraw funds at any time but requires a minimum deposit of $1,000.
What is a Money Market Account?
A legitimate reason to use your emergency fund.
What is a dead car battery or car troubles?
The Rule of 72 estimates how long it takes money to do this.
What is double?
According to Murphy’s Law, this is why saving money is essential.
What is anything that can go wrong, will go wrong?
A persistent rise in the cost of goods and services over time is known as this.
What is inflation?
The percentage that represents an investment’s profit or loss over time.
What is the rate of return?
The three questions to ask before using your emergency fund.
What are: Is it unexpected? Is it necessary? Is it urgent?
If Ms/ Stump invests $5,000 at 8% interest, it will take this many years for her money to double.
What is 9 years?
Making payments on a car is a bad financial decision because of these two reasons.
You lose money to interest, and cars depreciate in value?