Finance 1
45% of Americans have less than $1,000 saved for a(n) ________.
What is Emergency.
Why do some accounts, like savings accounts at your local bank, earn interest?
What is…because the bank pays you to use your money.
Which two habits are the most important for building wealth and becoming a millionaire?
What is…Consistently investing money and giving it time to grow
Compound interest is earned at a fixed rate, while ________ is an average based on an investment’s future.
What is…Compound growth
The top three careers reported among millionaires were______, _________, and _______.
What is…Accountants, engineers, and teachers
You’ll have less freedom with your money if you…
What is…Are paying for things in your past.
It’s not IF an emergency will happen, but…
What is…When.
The interest rate on a Savings account determines…
What is…how quickly your money will grow over time
What is the goal of an emergency fund?
What is…to have cash on hand for unexpected events
True or False: In order to outpace inflation when investing, your investments need to have a lower rate of return than the rate of inflation.
What is…False
Once you have a $500 emergency fund, you should…
What is…save it until you have an emergency.
If you really want to save money, you’ve got to…
What is…Live on less than you make
_______ is a millionaire’s best friend.
What is…Compound Growth.
The main goals for saving your hard earned money are…
What is…Emergencies, large purchases, and wealth building
True or False: 90% of millionaires make over $100,000 a year.
What is… False
The first step you should take when you want to make a large purchase is…
What is…Decide how much you’ll need to save and the time frame you want to save it in.
The only place you should keep your emergency fund money is…
What is…A savings account or money market account.
The purpose of an emergency fund is to…
What is… Be able to cover an unexpected expense with cash and protect you from having to pile up debt when something goes wrong.
Once you’re out of school, have started your career, and have zero debt, your emergency fund should have…
What is…3-6 months of living expenses
The amount of interest charged on a debt but not yet collected is called…
What is…Accrued Interest
The best way to build wealth is to start investing early. You should start investing money…
What is…Once you’re out of college, living debt free, and have 3-6 months of living expenses saved
True or False: If people saved the equivalent of a car payment each month for a year or two (instead of spending it on payments and interest), they could have enough money to buy a car with cash for much cheaper!
What is…True
Why do stores rarely advertise the full price of big purchases like a smartphone?
What is…by showing you only the monthly payment, they make the product seem affordable.
What is the third foundation?
What is…pay cash for your car
What principal says that a certain amount of money today is worth more than the same amount in the future?
What is…The Time Value of Money