Personal Finance Savings and Investing

 45% of Americans have less than $1,000 saved for a(n) .

• emergency

• car

• retirment fund

• new smart phone

Once you have a $500 emergency fund you should

• gamble it

• pay debt

• invest in stocks

• Continue to save

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

• Ask your parents to loan you the money with low interest

• Get a new credit card

•  Decide how much you'll need to save and the time frame you want to save it in

• 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 3–6 months of living expenses saved

• When the stock market is performing really well

• As soon as you have extra cash

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

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

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

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

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

• Always 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

The interest rate on a savings account determines . . .

• How much money you need to have to open the account

• How much you will pay the bank to manage the account

• The amount of time your money will be in the account

• How quickly your money will grow over time

The purpose of an emergency fund is to . . .

• Be able to cover an unexpected expense with cash and protect you from having to pile up debt when something goes wrong.

• Teach you how to invest in growth stock mutual funds.

• Have some extra money in a checking account in case you need to transfer some to your spending categories. 

• Teach you discipline—saving is purely a good exercise in self-control.

Compound interest is earned at a fixed rate, while is an average based on an investment's past performance.

• The principal

• Interest rate

• The Fifth Foundation

• Compound growth

Which is NOT one of the three reasons to save we learned about

• to pay for large purchases

• to build wealth

•  to cover monthly expenses

•  for emergencies