Unit 4(3) Review

Front

What is the recommended amount to have saved in an emergency fund according to personal finance experts?

Back

3-6 months of expenses.

Front

What does it mean to 'invest in yourself first' in personal finance?

Back

It means to set aside part of every paycheck for savings before spending.

Front

Order the following types of accounts by their typical interest rate from lowest to highest: Checking, Savings, Money Market, CD.

Back

Checking, Savings, Money Market, CD.

Front

What are 529 plans primarily used for?

Back

Education expenses.

Front

What can Health Savings Accounts (HSAs) be used for?

Back

Health expenses.

Front

What are two effective strategies for saving $5000 before heading to college?

Back

Control impulse spending and break your goal into smaller time frames.

Front

Why is it important to have an emergency fund?

Back

To cover unexpected expenses and avoid debt.

Front

What is the difference between a checking account and a savings account?

Back

A checking account is used for daily transactions, while a savings account is used for saving money and typically earns interest.

Front

What is a Certificate of Deposit (CD)?

Back

A savings account with a fixed interest rate and fixed date of withdrawal.

Front

What is the purpose of a budget in personal finance?

Back

To plan and track income and expenses.