Grow: Financial Planning for Life

What can help you be prepared for unexpected costs, such as car repairs?

• Short-term financial goal

• An emergency fund

• Long-term financial goal

• Retirement savings

Which of the following should an emergency fund be used to pay for?

• Monthly bills

• new boat

• College classes

• Car repairs

Amari and his four best friends decided they would save up and get tickets to see their favorite basketball team play in a nearby city for spring break of their senior year of high school. During his junior year, he started saving money for the big trip. What type of financial goal is this?

• Short-term goal

• Mid-term goal

• Long-term goal

• Emergency expense

What is the main reason you should start saving for retirement as early as possible?

• To ensure that you save enough money to travel the world

• To give your money time to grow with compound interest

• So that you can enjoy your money while you're young and able to spend it

• So you have enough time to decide where you would like to retire

What is it called when you earn interest on both the money you deposit, plus any interest you earned previously?

• Financial goal

• Compound interest

• A savings account

• An emergency fund

Khalil works in the gig economy, making deliveries for local stores and restaurants. He's trying to save money so he can go back to college next semester. However, his car stopped working and needs a few repairs. What should Khalil do?

• Start a savings account where he can put money away for car repairs

• Put all of the money toward his college fund so that he can reach his goal sooner

• Make sure that the car is repaired first, so that he can keep working

Starting amount: $500 Years to invest: 40 Additional contributions: $100 per month Average annual rate of return: 7.6% compounded annually Total amount invested:48,500 Ending investment balance: $289,279.40 This demonstrates why it's important to______.

• start with a large amount of savings

• save as much as you can every single month

• avoid retirement until you're 75

• let your savings grow over time

Every month, Noah takes home around $2,000. He uses $1,000 to cover his share of rent, utilities, transportation, and groceries. He uses around $650 on entertainment, eating out with friends, and other incidentals. The other $350, he divides between saving for emergencies and paying his student loans. What money management strategy is Noah using?

• Pay yourself first

• The 50-30-20 Method

• The Categories Method

• Investing in stocks

Sara is a server at a restaurant and most of her pay is in cash. She's used to dealing with cash and has a system where she divides her money into different envelopes each month. She has one envelope for rent, one for groceries, one for gas, etc. At the end of each month, she takes one envelope for savings and deposits it into her savings account. What money management strategy is Sara using?

• Pay yourself first

• The 50-30-20 Method

• The Categories Method

• Investing in stocks

What should all budgeting methods have in common?

• Dividing net income by percentages

• Defining different classifications of expenses

• Putting money in savings for the future

• Using credit cards wisely to build credit history