Step 1: Save Instead of Spend

Multiple Choice

Which of the following best describes the principle of living below your means?

• Spending more than you earn to enjoy life now

• Saving only what is left after all expenses

• Consistently spending less than your income and saving the difference

• Relying on credit cards for daily expenses

Open Ended

Why is saving money considered an important step towards achieving financial independence?

Multiple Choice

According to Warren Buffett's advice, what should you do first with your income?

• Spend what you want, then save the rest

• Save first, then spend what is left

• Invest everything immediately

• Spend and save equally

Open Ended

How does prioritizing saving over spending contribute to achieving financial independence?

Multiple Select

Which of the following are benefits of balancing spending and saving?

• Ensures resources for future investment

• Allows for unlimited spending

• Helps prioritize important expenses

• Promotes financial stability

Fill in the Blank

To save effectively, one must live below their ___ .

Multiple Choice

What is the first small step toward financial independence according to the presentation?

• Spend more than you earn

• Save instead of spend

• Invest in risky assets

• Borrow money

Open Ended

Describe a strategy you could use to start saving for the future, based on the concepts presented in the slides.

Multiple Choice

What is the main benefit of accumulating approximately $300,000 by age 65, according to the concept of accumulation goals?

• It allows you to retire early.

• It can yield a $1 million payoff through compounding interest.

• It guarantees a fixed income after retirement.

• It eliminates the need for monthly savings.

Multiple Choice

Why is starting a structured monthly savings plan early important for long-term financial outcomes?

• It increases the total amount you need to save.

• It reduces the monthly amount needed to reach your goal.

• It makes it harder to track your savings.

• It delays the benefits of compounding interest.

Multiple Select

Which of the following are benefits of starting to save at age 21 compared to starting at age 30?

• Lower monthly savings required

• Greater benefits from compounding

• Higher risk of financial loss

• More time for savings to grow

Open Ended

Compare the monthly savings required to reach a $300,000 goal by age 65 when starting at ages 21, 25, and 30. What trend do you observe, and what does this suggest about the importance of starting early?

Open Ended

Explain how compounding interest impacts wealth accumulation and why starting early enhances its effect.

Fill in the Blank

Compounding interest allows savings to grow ___ over time.

Multiple Choice

What is the first small step toward financial independence according to the lesson?

• Spend more than you earn

• Save instead of spend

• Avoid all expenses

• Invest in risky assets

Open Ended

Explain how debt can affect a person's ability to save for future goals.

Fill in the Blank

The rising ___ of living makes it harder for people to save money.

Open Ended

Describe a strategy that could help someone resist the temptation to spend and focus on saving.

Multiple Select

Which of the following are mentioned as factors that make saving difficult?

• Student loans

• Advertising

• Wage growth

• Impulse buying

Multiple Choice

Which of the following is NOT a challenge to saving money as described in the lesson?

• Impact of Debt

• Cost of Living

• Temptation to Spend

• High Interest Savings

Multiple Choice

What is the main goal of the Financial Independence Movement?

• To encourage individuals to save and invest for financial freedom

• To promote spending and luxury lifestyles

• To discourage community support

• To focus only on offline communities

Multiple Select

Which of the following are key principles of the FIRE movement?

• Aggressive saving

• Aggressive spending

• Investing

• Reducing expenses

Open Ended

Explain how the principles of FIRE (Financial Independence, Retire Early) can help someone achieve early retirement.

Fill in the Blank

ChooseFI is a(n) ___ that advocates for financial independence.

Open Ended

List two types of resources mentioned that can help individuals seeking financial advice.

Multiple Choice

According to the presentation, what is the first small step to financial independence?

• Save instead of spend

• Invest in stocks

• Start a business

• Borrow money

Multiple Choice

Which of the following best describes the balance between spending and saving?

• Spending all your money and saving none of it

• Saving all your money and spending none of it

• Finding a balance between spending for needs and saving for the future

• Spending more than you earn

Open Ended

Reflecting on what you learned today, why do you think saving is considered an important step towards financial independence?