Personal Finance Chapter 3 Lesson 4

How can you save for a large purchase?

• By using a credit card

• By taking out a loan

• By dividing the total cost by the number of months and saving that amount each month

• By borrowing money from friends or family

Why is it better to pay cash for a large purchase instead of using a credit card?

• Paying cash saves you money on interest

• Using a credit card helps build your credit score

• Credit cards offer better protection for your purchase

• Paying cash is more convenient

What was the total U.S. auto loan debt at the start of 2020?

• $1.35 trillion

• $1.35 billion

• $1.35 million

• $1.35 thousand

What is the third foundation for making smart purchases?

• Paying cash for your car

• Getting the best financing deal

• Buying the newest model

• Leasing instead of buying

How much is the average monthly car payment for a new car?

• $554

• $354

• $754

• $954

What percentage of its value does a car typically lose within five years?

• 60%

• 40%

• 80%

• 20%

How much can you save in 10 months by putting $554 in savings each month?

• $5,540

• $1,540

• $3,540

• $7,540

What should you do before making a big purchase?

• Rush into it and buy it immediately

• Sleep on it and think about it before buying

• Ask your friends for their opinion

• Buy it right away without considering the cost

Why should you be cautious of zero-interest deals?

• They often have hidden fees

• They require a large down payment

• They have high interest rates after the promotional period

• They are too good to be true