Personal Finance Ch. 1 Savings

The first thing you should save for is your _________.

• emergency fund
• vacation fund
• new car fund

Tags

CCSS.RI.11-12.3

CCSS.RI.11-12.5

CCSS.RI.8.3

CCSS.RI.9-10.3

CCSS.RI.9-10.5

A PAC (pre-authorized checking) does what?

• Builds discipline by making sure money goes to savings

• Sends money to a savings account
• Allows unlimited overdrafts

Baby step # 1 is to:

• pay off debt

• Save $1000 (or $500 if student)

• pay off your house

Place your emergency fund in this account.

• money market account

• Checking account
• Credit card account

The typical American has a __________ savings rate.

• high
• low
• negative

Tags

CCSS.RI.11-12.4

CCSS.RI.8.4

CCSS.RI.9-10.4

CCSS.RL.11-12.4

CCSS.RL.9-10.4

A fully funded emergency fund is ____ months of expenses.

• 7-9
• 1-2
• 3-6

The percentage that your money earns or grows is called the __________.

• yield
• rate of return

• dividend

Tags

CCSS.7.RP.A.3

Hannah needs a car. She can get 3.5% interest on a new one. What should she do?

• Buy a used car with 0% interest
• save up and buy a used car

• Take a loan with 10% interest instead

Compound interest is ______________.

• interest calculated on the initial principal and also on the accumulated interest of previous periods
• interest calculated only on the initial principal
• interest calculated on the final amount only

Tags

CCSS.7.RP.A.3

When planning purchases, you should use the ___________ approach. 

• sinking fund

• impulsive
• haphazard

Tags

CCSS.8.EE.C.7B