Personal Finance Chapter 3 Lesson 5

What is the Fourth Foundation?

• Pay cash for college

• Invest in stocks

• Take out loans for college

• Save for retirement

What is the Fifth Foundation?

• Pay off all debts

• Build wealth and give

• Save for large purchases

• Invest in real estate

What is the key to building wealth?

• Having a high salary

• Investing consistently for years

• Winning the lottery

• Inheriting a large sum of money

What is the difference between saving and investing?

• Saving is for short-term goals, while investing is for long-term goals

• Saving is for retirement, while investing is for college

• Saving is for emergencies, while investing is for vacations

• Saving is for large purchases, while investing is for small purchases

What is the advantage of starting to invest early?

• You can retire early

• You can buy a house sooner

• You can take more vacations

• You can see significant growth over time

What percentage of Americans have $0 saved for retirement?

• 10%

• 25%

• 50%

• 75%

What is the main reason to build wealth?

• To become famous

• To buy expensive things

• To help people in need

• To show off to others

What careers were reported among millionaires?

• Acting, sports, and music

• Accounting, engineering, and teaching

• Law, medicine, and business

• Politics, journalism, and technology

What is the recommended time frame for investing?

• 1-5 years

• 5-10 years

• 10-20 years

• 20-30 years or longer

What is the formula for building wealth?

• Money and time

• Luck and opportunity

• Education and skills

• Connections and networking