Personal Finance Final Exam Review

The first three baby steps are

• Emergency Fund, Debt Snowball, Invest 15%

• $1,000 in Emergency Fund, Debt Snowball, 3-6 months of expenses in Emergency Fund

• $1,000 in Emergency Fund, Debt Snowball, $3,000-6,000 in Emergency Fund

• Debt Snowball, 3-6 Months in Expenses in Emergency Fund, 15% in Retirement

How much should you invest for retirement?

• 10%

• 15%

• 20%

• 25%

The 5th Baby Step is

• College Fund

• Retirement

• Emergency Fund

• Pay off house

Which type of interest is calculated off of both the money you have invested and also the money you have earned in interest?

• Simple

• Compound

Where should you keep your emergency fund?

• Mutual Fund

• Single Stock

• Savings Account

• Money Market

The 7th Baby Step is

• Pay off your house

• Retirement

• Build wealth and give

• College fund

Diversification increases risk when investing.

• True

• False

The 6th Baby Step is

• College Fund

• Retirement of 15%

• Build Wealth and Give

• Pay off House

How much money is in a partially funded emergency account?

• $300

• 3-6 months of expenses

• $3,000-6,000

• $1,000

Which type of IRA has taxes taken out when you take the money out of the account?

• Traditional

• Roth

• Money Market