Personal Finance Ch 2

The first thing you should save for is your retirement fund.

• True
• False

You should save money for three basic reasons: emergency fund, purchases and wealth building.

• True
• False

Your income level greatly affects your savings habits.

• True
• False

When it comes to saving money, the amount you save is determined by how much you have left at the end of the month once all of you spending is done.

• True
• False

Americans typically maintain a very high savings rate.

• True
• False

You should hold off on investing for retirement until you have college or other post-secondary education paid for.

• True
• False

When you're in high school, you won't have the same emergency expenses as your parents.

• True
• False

An interest-bearing account is an account that generates interest income on the available balance in the account.

• True
• False

Money set aside and left alone for a "rainy day."

• emergency fund
• savings account

When a person intentionally invests money in a place where it can earn more money

• sinking fund
• wealth building