Pers Fin - Foundations - Chap 2 Savings - Review

Compares after-tax income to the money people spend on a variety of items.

• Interest Rate

• Savings Rate

The persistent rise in the cost of goods and services.

• Deflation

• Inflation

Which of the following is a reason that people don't save money?

• They lack discipline

• The do not live on a budget

• They lack focus

• All of the above

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 your spending is done.

• True

• False

The five steps to financial success.

• Five Money Myths

• Five Foundations

At your age, a fully funded emergency fund should be:

• $500

• $5,000

• $100

• $1,000

Which of the following steps is the First Foundation?

• Get out of debt

• Build wealth and give

• Save a $500 emergency fund

• Pay cash for your car

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

• True

• False

Instead of borrowing money for large purchases, you should set money aside in a ___ over time and pay with cash.

• Emergency fund

• Sinking fund

• Credit card fund

• Mortgage fund

Saving money over time for a large purchase.

• Installment debt

• Sinking Fund