Saving

Why should interest earned not be a factor with your emergency fund?

• The emergency fund is not intended to grow wealth.

• Inflation can eat up the interest earned.

• Interest-bearing accounts at banks earn a high rate of interest, therefore, interest is not a concern.

• None of the above

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.

• Inflation

• Deflation

Which of the following is a reason that people donʹt save money?

• They lack discipline

• They 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