CRM Chapter 3

45% of Americans have less than $1000 saved for a(n)_____.

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You'll have less freedom with your money if you . . .

• invest in the stock market

• are paying for things in your past

• put money in a bank account

• make less than $35,000

Once you have a $500 emergency fund, you should . . .

• start putting it toward debt

• invest it in the stock market to grow your money

• save it until you have an emergency

• use the money to pay for health insurance

The first step you should take when you want to make a large purchase is . . .

• ask you parents to loan you money

• get a new credit card

• decide how much you need to save and the time it will take you to save it

• sell something and use the proceeds

The best way to build wealth is to start investing early. You should start investing money . . .

• once you have a fully funded emergency fund

• once you're out of college, living debt-free, and have an emergency fund.

• when the stock market is performing really well.

• as soon as you have extra cash

Why do some accounts, like savings accounts at your local bank, earn interest?

• because they are really nice

• because they are paying to use your money

• because those accounts have great interest rates

• because of inflation

It's not IF an emergency will happen, but _____.

• why

• where

• when

• how

If you really want to save money, you've got to . . .

• fly economy class

• invest in a Roth IRA

• have a financial advisor

• live on less than you make

The only place you should keep your emergency fund money is...

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• 
• 
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Which two habits are the most important for building wealth and becoming a millionaire?

• Working a high-paying job and relying on a trust fund

• paying off your credit card on time and putting extra money into a retirement account

• Investing into the right stocks and using a private CPA

• Consistently investing money and patience to give it time to grow