Saving and Investing

Why do people NOT save money?

• they lack discipline

• they do not live on a budget

• they lack focus

• all of the above

At your age, a fully funded emergency fund should be:

• $500

• $5,000

• $100

• $1,000

The first thing you should save for is your retirement fund.

• true

• false

Instead of borrowing money for large purchases, you should set money aside in a _________ over time and pay with cash.

• emergency fund

• sinking fund

• credit card fund

• mortgage fund

Percentage paid to a lender for the use of borrowed money, or the percentage earned on invested principal.

• Interest Rate

• Savings Rate

• inflation

• change

Which of these is NOT a key to saving money?

• Focus

• Making saving a habit and a priority

• Your income

• Discipline

Interest paid on interest previously earned.

• Compound Interest

• Interest

Your income level greatly affects your saving habits.

• True

• False

Americans typically maintain a very high savings rate.

• True

• False

You should save money for three basic reasons: emergency fund, purchases and wealth building.

• True

• False