Savings and Loans

A relatively small amount of money lent at a high rate of interest on the agreement that it will be repaid when the borrower receives their next paycheck.

• savings account

• interest rate

• payday loan

• Rule of 72

Interest calculated on the initial principal, which also includes all of the accumulated interest of previous periods of a deposit or loan.

• savings account

• payday loan

• compound interest

• title loan

People should save money for emergencies to help avoid using credit cards, payday loans, or title loans.

• true

• false

People tend to spend more when they are using credit cards.

• true

• false

What are the criteria for using emergency fund money?

• urgent

• unexpected

• necessary

• large expense

• investments

What are the three things that your money should do?

• enjoying

• saving

• wealth building

• giving

• shopping

What are the three reasons to save?

• enjoying

• emergencies

• large purchases

• wealth building

• vacations

The interest earned on the initial principal only.

• compound interest

• interest rate

• simple interest

• principal

Lisa always gets up late. She was warned by her boss that she does not need to show up to work anymore if she is late again. Lisa also has trouble sleeping through the night. She has no extra money for other expenses, so she decides to go out and get an alarm clock with her emergency fund.

• This is an acceptable use of the emergency fund because she is poor and can not be fired from her job.

• This is not an acceptable use of the emergency fund because she should have better habits.

• This is not an acceptable use of the emergency fund because she is normally late and needs to find another solution.

• This is an acceptable use of the emergency fund because it is important to her.

Rounding to the nearest dollar, Larry intends to buy his bother's car in 2 years for $13,200. How much does he have to save each month for this large purchase?

Mathematical Equivalence

ON