Money Matters: Ch. 2 (Saving)

An account that generates interest income on the available balance in the account.

• inflation

• interest bearing account

• interest rate

• sinking fund

The five steps to financial success.

• discipline

• inflation

• Emergency Fund

• The Five Foundations

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

• Savings Account

• Checking Account

• Emergency Fund

• Sinking Fund

Interest paid on interest previously earned.

• Simple Interest

• Compound Interest

• Inflation

• Interest Rate

Saving money over time for a large purchase.

• Sinking Fund

• Mutual Fund

• Emergency Fund

• Savings Account

A rate is either charged (on debt) or paid (on investment accounts) for the use of money.

• Compound Interest

• Simple Interest

• Interest Rate

• Inflation

What percentage of America's millionaires are first generation rich?

• 80%

• 50%

• 10%

• None of the above

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

• $1,000

• $5,000

• $100

• $500

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

• Sinking Fund

• Emergency Fund

• Mortgage Fund

• Credit Card Fund

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