Person Finance Chp 3 Pretest

45% of Americans have less than $1,000 saved for a(n) _______.

• emergency

• car

• retirement fund

• new iphone

Tags

CCSS.RI.8.2

CCSS.RL.11-12.2

CCSS.RL.7.2

CCSS.RL.8.1

CCSS.RL.9-10.2

Why do some accounts, like savings accounts at your local bank, earn interest?

• Because you deposit money, adding to your principle each month

• Because the bank pays you to use your money

• Because of inflation

• Because those accounts always have great interest rates

You'll have less freedom with your money if you...

• invest in the stock market

• are paying for things in your past

• put money in a bank account

• Makes less than $35,000

Tags

CCSS.RI.8.1

CCSS.RI.8.8

CCSS.RL.11-12.1

CCSS.RL.8.1

CCSS.RL.9-10.1

The best way to build wealth is to start investing early. You should start investing money...

• As soon as you have extra cash

• once you have a fully funded emergency fund

• When you are out of college, living debt-free, and have 3-6 months of living expenses saved

• When the stock market is performing really well

The first step you should take when you want to make a large purchase is....

• ask your parents to loan you the money with low interest

• get a new credit card

• decide how much you need to save and the time frame you need to save it in

• sell something and use the proceeds

Once you have a $500 emergency fund you should...

• Start putting it toward debt

• save it until you have an emergency

• invest it in the stock market to grow your money

• use the money to pay for health insurance

It's not IF an emergency will happen, but....

• when

• why

• where

• how

Tags

CCSS.RL.2.6

CCSS.RL.8.3

The interest rate on a savings account determines...

• how quickly your money will grow over time

• how much money you need to have to open the account

• how much money you will pay the bank to manage the account

• the amount of time your money will be in the account

Tags

CCSS.7.RP.A.3

Which two habits are most important for building wealth and becoming a millionaire?

• working a high paying job and relying on a trust fund

• investing into the right stocks and using a private CPA

• consistently investing money and giving it time to grow

• always paying off your credit card on time and putting extra money into a retirement account

If people saved the equivalent of a car payment each month for a year or two (instead of spending it on payment and interest), they could have enough money to buy a car with cash for much cheaper.

• TRUE

• FALSE

Tags

CCSS.6.RP.A.3B