TRUE/FALSE
Debt is a tool used to make you wealthy
False
It's not IF an emergency will happen, but
When
A savings account set up specifically to be used to cover financial emergencies
Emergency Fund
interest paid on interest previously earned.
Compound Interest
You should budget in this order: giving, savings, spending.
True
45% of Americans have les than $1,000 saved for a(n)
Emergency
a purchase that requires a significant amount of money
Large Purchase
the initial amount of money invested.
Principal
90% of millionaires make over $100,000 a year.
False
While saving money isn't easy at first, it will make your life a lot in the future if you make it a habit.
Easier
the percentage of principal charged by the lender for the use of its money
Interest Rate
the measurement of an investment's profit or loss, usually expressed as a percentage of initial investment .
Rate of Return
If people saved the equivalent of a car payment each month for a year or two ( instead of spending it on a payment and interests), they could have enough money to buy a car with cash for much cheaper!
True
Three main reasons for saving your money are emergencies, large purchases and
Wealth Building
the amount of interests charged on a debt but not yet collected; interest accumulates from the date a loan is issued.
Accrued Interest
the persistent rise in the cost of goods and services over time
Inflation
In order to outpace inflation when investing, your investments need to have a lower rate of return than the rate of inflation.
True
When determining if something is really an emergency expense, you need to ask yourself: "Is it necessary?, Is it unexpected? and Is it
Urgent
the average rate of growth for an investment over time; often expressed as an annual figure
Compound Growth
concept that an amount of money is worth more today than in the future due to earning potential
Time Value Of Money