Personal Finance Exam

What is The First Foundation?

• Pay cash for college.

• Save a $500 emergency fund.

• Open a checking account.

A money principle to keep in mind is to live on _ you make.

• more than

• less than

• the same as

How often should you create a budget?

• Daily

• Weekly

• Monthly

The first priority in your budget should be _____.

• giving

• spending

• saving

The best way to budget is...

• by using a digital app

• creating a spreadsheet

• the way that works best for you

_______ is a millionaire's best friend.

• Accrued interest

• Compound growth

• Profit sharing

What is the Third Foundation?

• Pay cash for college

• Pay cash for your car

• Save for retirement

The amount of interest charged on a debt but not yet collected is called...

• interest rate

• accrued interest

• growth rate

Which principle says that a certain amount of money today is worth more than the same amount in the future?

• Inflation

• Rate of return

• The time value of money

Your greatest tool to building wealth is _____________.

• tax cuts

• your income

• your credit score