Chapter 1&2 Money In Review

Saving money for a purchase and letting the interest work for you rather than against you.

• sinking fund

• Money Market

• $500 or $1000 in emergency fund

• 3-6 months of expenses

• pay off debt

Money is neither good nor bad. It is...

• amoral

• Money Market

• $500 or $1000 in emergency fund

• 3-6 months of expenses

• pay off debt

Emergency fund goes here

• Money Market

• $500 or $1000 in emergency fund

• 3-6 months of expenses

• pay off debt

• amoral

Interest on interest

• compound interest

• Money Market

• $500 or $1000 in emergency fund

• 3-6 months of expenses

• pay off debt

Key to wealth building.

• discipline

• Money Market

• $500 or $1000 in emergency fund

• 3-6 months of expenses

• pay off debt

Ben and Arthur illustrate which principal of saving?

• The rule of 72

• Compound interest

• Simple interest

• None of the above

The 3 reasons to save are:

• Emergency fund

• Purchases

• Wealth building

• Pay off debt

• Donations

Saving is about contentment and:

• Emotion

• Greed

• Having money

• Pride

The following is true about pre authorized checking. Select all that apply.

• It automates your finances

• It helps build discipline when saving

• It can be done on your banking app.

• An example would be to transfer $200 every paycheck from checking to savings

• You must go to a physical bank to set it up.

Which of the following is true about a Money Market Account?

• It is a little harder to access than a savings account

• A money market earns slightly higher interest than a savings account

• You can write checks from a money market account

• All of the above