Debt and Savings

The five steps to financial success

• The Five Compliments
• The Five Foundations
• The Five Freedom Steps
• The Five Money Saving Steps

A savings account that is set aside to be used only for emergency expenses

• Safety Fund
• Emergency Fund
• Savings Fund
• Expense Fund

Interest paid on interest previously earned

• Simple Interest
• Frequent Interest
• Interest Account
• Compound Interest

Saving money over time for a large purchase

• Savings Account

• Sinking Fund

• Checking Account

• Interest Bearing Account

The persistent increase in the cost of goods and services or the persistent decline in the purchasing power of money

• Deflation
• Interest
• Inflation
• Recession

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

Your income level greatly affects you saving habits

• False
• True

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

• $1000
• $5000
• $500
• $100

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

• Mortgage Fund
• Credit Card Fund
• Emergency Fund
• Sinking Fund

What is the first foundation?

• Pay cash for College
• Get Out of Debt
• Pay Cash for Your Car
• Save a $500 Emergency Fund