Chapter 3 Personal Finance Test Review

Front

45% of Americans have less than $1,000 saved for a(n) ________. Options: Emergency, Car, Retirement fund, New smartphone

Back

Emergency, Car, Retirement fund, New smartphone

Front

You'll have less freedom with your money if you...

Back

Are paying for things in your past

Front

Once you have a $500 emergency fund, you should...

Back

Save it until you have an emergency

Front

The first step you should take when you want to make a large purchase is . . .

Back

Decide how much you'll need to save and the time frame you want to save it in

Front

The best way to build wealth is to start investing early. You should start investing money . . .

Back

Once you're out of college, living debt-free, and have 3–6 months of living expenses saved

Front

Why do some accounts, like savings accounts at your local bank, earn interest?

Back

Because the bank pays you to use your money

Front

It's not IF an emergency will happen, but ________.

Back

When, Where, Why, When

Front

If you really want to save money, you’ve got to...

Back

Live on less than you make

Front

Where should you keep your emergency fund money?

Back

A savings account or money market account

Front

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!

Back

True