Saving Money

45% of Americans have less than $1,000 saved for a(n)

• Emergency

• Car

• Retirement Fund

• New Smartphone

You'll have less freedom with your money if you...

• Invest in the stock market

• Are paying for things from your past

• Put money in a bank account

• Make less than $35,000

Once you have a $500 emergency fund, what should you do next?

• Start putting it towards debt

• Invest it in the stock market to grow your money

• Save it until you have an emergency

• Use the money to pay for health insurance

The first step you should take when you want to make a large purchase is...

• Ask your parents to loan you the money with low interest

• Get a new credit card

• Decide how much you'll need to save and the time frame in which you want to save it

• Sell something and use the proceeds

The best way to build wealth is to start investing early. You should start investing money ...

• Once you have a fully funded emergency fund

• Once you're out of college, living debt-free, and have 3-6 months of living expenses saved

• When the stock market is performing really well

• As soon as you have extra cash

Why do some accounts, like savings accounts at your local bank, earn interest?

• Because you deposit money, adding to your principal each month

• Because the bank pays you to use your money

• Because those accounts always have great interest rates

• Because of inflation

It's not a question of if an emergency will happen, but

• How

• Where

• Why

• When

If you really want to save money, you've got to...

• Fly economy class

• Live on less than you make

• Invest in a Roth IRA

• Have a financial advisor

The only place you should keep your emergency fund is:

• A savings account or money market account

• A safe in your bedroom

• An envelope in a safe place

• A Roth IRA

If people saved the equivalent of a car payment each month for a year or two, instead of spending it on payments and interest, they could have enough money to buy a car with cash, which would be much cheaper.

• True

• False