Key Terms
The price of goods and services increases over time due to The price of goods and services increases over time due to _________ .
Inflation
Kept
_____ of Americans have $0—yes, zero—saved.
14%
45% of Americans have less than $1,000 saved for a(n) _______.
Emergency
_______ is a millionaire's best friend.
Compound Growth
Interest paid on interest previously earned is called__________.
Compound Interest
The third reason to save is for ______ building.
wealth
Debt steals your future, but saving secures your _________ .
future
You'll have less freedom with your money if you . . .
Are paying for things in your past
What is the Third Foundation?
Pay cash for your car
The average rate of growth for an investment over time; often expressed as an annual figure.
Compound Growth
An emergency fund turns a crisis into a(an)
inconvenience
_____ of millionaires say they plan and save in advance for big expenses—compared to 67% of the general population.6
95%
Once you have a $500 emergency fund, you should . . .
Save it until you have an emergency
90% of millionaires make over $100,000 a year.
False
The amount of interest charged on a debt but not yet collected; interest accumulates from the date a loan is issued
Accrued Interest
Avoid ______ payments for life.
car
One out of every three Americans experienced a _________ or income disruption during the COVID-19 pandemic.
job loss
The first step you should take when you want to make a large purchase is . . .
Decide how much you'll need to save and the time frame you want to save it in.
The amount of interest charged on a debt but not yet collected is called . . .
Accrued interest
The percentage of principal charged by the lender for the use of its money
Interest Rate
feels
Total U.S. auto loan debt at the start of 2020 was _______?
$1.35 trillion
The only place you should keep your emergency fund money is...
A savings account or money market account
The top three careers reported among millionaires were _______,________ , and_________.
Accountants; engineers; teachers