The First Foundation
Vocabulary
Compound Interest
Wealth Building
Miscellaneous
100

The First Foundation

What is Save a $500 emergency fund?hhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhh

100
Interest paid on interest previously earned
What is Compound Interest
100
Persistent rise in the cost of goods and services
What is Inflation
100
Key ingredient when it comes to wealth building
What is Discipline
100
A rate which is either charged (on debt) or paid (on investment accounts) for the use of money.
What is an interest rate
200

Money today has different buying power than the same amount of money in the future skibidobdob YES

What is Time value of money

200
Saving money over time for a large purchase
What is a Sinking Fund
200
Interest paid on interest previously earned
What is Compound interest
200
An account that generates interest income on the available balance in the account
What is an interest-bearing account
200
Americans typically maintain a very high savings rate.
What is False
300
True or False: You should keep your emergency fund in the same account as your spending money.
What is False
300
Money set aside and left alone for a "rainy day".
What is an Emergency Fund
300
In investing, it is the money the principal (money invested) earns
What is interest
300
Third thing you save money for
What is wealth building
300
The Second Foundation
What is Get out of Debt
400
The Five steps to financial success
What is the Five Foundations
400
Compares after-tax income to the money people spend on a variety of items
What is a savings rate?
400
Calculate the compound interest for the following. Assume interest is compounded annually. 1,000 at 6% interest for three years **You may use the formula & your computer calculator. FV=PV (1+r/m)^mt (Remember mt is an exponent.)
What is $1191.02
400
Allows your money to work for you Hint* One word
What is Investing
400
Third Foundation
What is Pay Cash for your Car
500
3 basic reasons you should save
What is Purchases, Emergency Fund, Wealth Building
500
When a person intentionally invests money in a place where it can earn more money
What is Wealth Building
500
Calculate the compound interest for the following. Assume interest is compounded annually. 5,000 at 18% interest for four years **You may use the formula & your computer calculator. FV=PV (1+r/m)^mt (Remember mt is an exponent.)
What is $969.39
500
In the story of Ben & Arthur, who is the one that starts saving at age 19?
Who is Ben?
500
Fourth Foundation
What is Pay Cash for College
M
e
n
u