Foundations Digital: Chapter 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.

• Inflation

• Deflation

Which of the following is a reason that people donʹt save money? -Check ALL that APPLY

• They lack discipline

• They do not live on a budget

• They lack focus

• None 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

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

• $100

• $1000

• $500

• $5,000

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

• True

• False

Another name for the five steps to financial success, is...?

• Five Foundations

• Five Money Myths

Which of the following steps is the First Foundation?

• Get out of debt

• Build wealth and give

• Pay cash for your car

• Save a $500 emergency fund

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

• Sinking fund

• Emergency fund

• Credit card fund

• Mortgage fund

Percentage paid to a lender for the use of borrowed money, or the percentage earned on invested principal.

• Savings rate

• Interest rate