Personal Finance Exam

Which of the following is a reason that people donʹt save money?

• they lack discipline

• they do not live on a budget

• they lack focus

• all of the above

When it comes to saving money, the amount you save is determined by how much you have left at the end of the month once all of your spending is done.

• True

• False

The five steps to financial success.

• Five Money Myths

• Five Foundations

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

• $500

• $5,000

• $100

• $1,100

Which of the following steps is the First Foundation?

• Get out of debt

• build wealth and give

• save a $500 emergency fund

• pay cash for your car

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

• true

• false

Save a $500 emergency fund.

• The First Foundation

• The Fourth Foundation

What does it mean to have a negative savings rate?

• Saving for something that is a want instead of a need

• Having a fully funded emergency fund

• Having no savings at all

• Spending more money than you make and acquiring death

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