4 - Investing

Which of the following are examples of income

• Pension fund

• Savings

• Salary

• Shares

• Welfare benefits

How is wealth defined?

• How much money you have in your Checking and Saving accounts
• Debts - Assets
• All assets, including money in the bank + retirment
• Assets - Debts

Which is NOT a typical goal for a savings account?

• To create an emergency fund
• To pay for higher education
• To save for a new car
• To buy groceries for this week

About how much should you save in an emergency fund?

• 1-3 months of living expenses
• 3-6 months of living expenses
• 6-9 months of living expenses
• 9-12 months of living expenses

What is a reason for why so many Americans live paycheck-to-paycheck?

• Many people are paying themselves first and then spending

• Many people only buy what they NEED, not what they WANT

• Many people impulse shop

• Many people spend within their budget

True or False: You need a checking account to open a savings account.

• True
• False

How many times a year does semiannual mean?

• 1
• 2
• 4
• 12

If I am compounding quarterly, I need to divide the interest rate by _____.

• 2

• 3

• 4

• 5

The amount money a person expects to have in the future is called

• Principal
• Future Value
• Simple Interest
• Present Value

Earning interest on interest is called

• Extra Interest
• Simple Interest
• Inflation Interest
• Compound Interest