Lesson 6 Quiz

You should save up a $500 emergency fund before you pay off your debt.

• True

• False

What is the snowball method?

• Paying off the smallest debts and then moving onto the progressively larger ones as quickly as possible.

• Making a big snowball for the big snowball fight.

• Paying off debts largest to the smallest.

• Budgeting your expenses starting from smallest to largest.

Why is it important to get out of debt?

Select all that apply

• To have more money to spend on yourself. (pay yourself first)

• To have more money to spend on others. (being generous)

• To have more money to spend on games on your phones.

An effective method of getting out of debt is the ​​​ (a)   because you pay off your smallest debts and then move into your largest ones.

• snowball method
• mountain method
• start slow method

Why is the snowball method effective?

• It builds your confidence.

• It isn't.

• It gives you back some of your money.

How does your debt affect your generosity?

• You have less time to give if you are busy paying off debts.

• You don't have money to give to others if you have debt to pay off.

• You give more because you do not care about your debt.

Paying off debt is not a math problem—it is a ​ ​ (a)   problem.

• behavior
• math

Draw a snowball

Reorder the following

• Build wealth and give

• Pay cash for college

• Save a $500 emergency fund

• Pay cash for a car

• Pay off your debt

The snowball method is a ​ (a)   process

• fast
• slow