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