Vocabulary
the percentage of principal charged by the lender for the use of its money
45% of Americans have less than $1,000 saved for a(n)_______
emergency
Why do some accounts, like savings accounts at your local bank, earn interest?
Because they use your money
The first foundation: save a ________emergency fund.
$500
It's not IF an emergency will happen, but ....
When
a savigs account set up specifically to be used to cover financial emergencies
Emergency Fund
Once you have a $500 emergency fund, what should you do with it?
save it until you have an emergency
Which two habits are the most important for building wealth and becoming a millionaire?
Investing money and giving it time to grow
Once you're out of school, have started your career, and have zero debt, your emergency fund should have .......
3-6 months living expenses
Adults devise a plan and follow it. Children do what ________ good.
feels
the initial amount of money invested or borrowed
While saving money isn't easy at first, it will make your life a lot _______in the future if you make it a habit now.
Easier
The interest rate on a savings account determines . . .
how quickly your money will grow
True or False: 90% of millionaires make over $100,000 a year
False
A crisis becomes an ___________ when you have an emergency fund.
Inconvenience
________ is a millionaire's best friend
compound growth
True or False: A recent stuy shows that 36% of Americans couldn't cover a $400 financial emergency without going into debt.
True
The top three careers reported among millionaires were ____,_____ , and _____.
Accountants, engineers, and teachers
One of the main reasons we build wealth is so that we can . . .
give to those in need
If you really want to save money, you've got to . . .
Live on less than you make
The amount of interest charged on a debt but not yet collected is called......
Accrued Interest
_____% of Americans have $0 saved
A. 14% B. 24% C.33%
A. 14%
Compound interest is earned at a fixed rate, while __________is an average based on an investment's past performance.
Compound growth
3 main reasons for saving your hard-earned money are . . .
emergencies, large purchases, wealth building
Broke people ask, How much down and how much per month? Rich people ask.....
How much?