savings 1
what is an emergency fund and how do you use it?(bonus points of 100 is you give me a detailed scenario)
it is a(n) savings account used to cover financial emergencies(or something that is close to this answer)
what is an interest rate and what does it do?
the percentage of pricipal charged by the lender for use of its money
what is a large purchase(if you get this wrong you get -50 points)
a purchase that requires a large amount of money(if you get this wrong you're cooked)
what is a principal?(in finance not a school principal)
the initial amount of money interested or borrowed(-200 points if you got this wrong)
what is the third foundation?
pay cash for your car(how could you get this wrong)
what is compound growth?(50 bonus points if you can tell me why it exists)
the average rate if growth for an investment over time; often expressed as an annual figure(or an answer close to this)
what is compound interest?(that's it nothing else)
interest paid on interest previously earned(if you got this wrong I'm shocked)
what is the time value of money(you get no bonus points if you get this right)
it is the concept that an amount of money is worth more than in the future due to earning potential(or something close to this answer
which two habits help you build and save money?
consistently investing money and giving it time to grow(pretty easy question free 200 points)
what is the goal of an emergency fund?
to have cash for unexpected events(free 200 points tbh)
what is accrued interest and what does it do?(nathan you're cooked)
the amount of interest charged on a debt but not yet collected: interest accumulates from the date a loan is issued
what is a(n) rate of return?
the measure of an investment's profit or loss, usually expressed as a percentage of the initial investment(if you get this wrong go back in time and relearn the third chapter)
if you really want to save money you should start ...
living on less than you make(how could you get this wrong? it's so easy)
what is a millionaires best friend?
compound growth(I would understand if you got this wrong)
compound interest is at a fixed rate, while ________ ______ is an average based on an investment's past performance
compound growth
why do stores rarely advertise big purchases like smart phones?
by only showing you the monthly payment, they make the product seem affordable
why do some banks, like savings accounts at your local bank, earn interest?
because you deposit money, adding to your principal each month
45% of Americans have less than $1,000 saved for a(n) _________?
emergency
the main reasons for saving your hard earned money are ___________(multiple words)
emergencies, large purchases, and wealth building
the first step you take for making a large purchase is?
to decide how much you want to save and what time frame you want to save for it in
what are the three questions you ask before you spend your emergency fund?
is it unexpected, is it necessary?, is it urgent?
How does Murphy's Law ("anything that can go wrong will go wrong") apply to saving money?
you should be prepared for when something does go wrong(or something close to this)
How does planning and saving for your future help you build wealth?
when you plan you have a path laid out for you that is ready for anything(or something along this answer)
what are the main differences between saving and investing?
when you save, your money it is guaranteed to stay put and not change at all. while with investing you put your money in, and it (depending on what you're investing in) is not guaranteed to go up or down.
why would you avoid interest rate deals like zero-percent interest?
If I don't have the money to pay for the item up front, odds are I will have a hard time making the monthly payments on time. And that's what the businesses are counting on—if I make a late payment or fail to pay off the balance in time, I'll pay accrued interest, often all the way back to the purchase date.(or something along the lines of this answer)