Chapter 3 Lesson 5 Building Wealth

What is the best approach to pay for college according to the reading?

• Take out large loans.
• Rely on scholarships only.
• Pay cash for college before focusing on building wealth.
• Invest in stocks to cover college expenses.

How does time play a role in building wealth?

• Wealth can only be built quickly.
• Time only matters when saving money.
• The longer money is invested, the more it can grow through compound interest.
• Time has no effect on wealth building.

What does compound growth mean in the context of wealth building?

• The process of saving money without any interest.
• The growth of an investment over time due to interest on both the initial principal and accumulated interest.
• The reduction of debt over time.
• The increase in wealth from selling assets quickly.

What percentage of millionaires attribute their wealth to hard work?

• 50%
• 75%
• 93%
• 100%

Based on Jack and Blake's stories, what can be inferred about starting to invest early?

• It is better to wait until you have a stable job.
• It is only beneficial for those with a lot of money.
• It can lead to significantly greater wealth over time.
• It has no impact on wealth accumulation.

Which of the following is a misconception about building wealth?

• Building wealth requires hard work.
• Compound growth is important for wealth accumulation.
• You can start forming wealth-building habits today.
• Wealth can only be built through high salaries.

Which statement best describes the difference between saving and investing?

• Saving is for long-term goals, while investing is for short-term goals.
• Investing is for longer than five years, while saving is for shorter-term goals.
• Saving involves high risks, while investing is risk-free.
• Investing is only for wealthy individuals, while saving is for everyone.

What is the primary reason to build wealth according to the reading?

• To avoid working hard
• To help people in need
• To gain social status
• To buy luxury items and show off

If you start investing at age 20 instead of age 30, how might this affect your wealth by retirement?

• You will have less wealth by retirement.
• You will have more wealth due to compound growth.
• It will not make a difference.
• You will have to work harder.

What is a key habit to start forming for building wealth?

• Spending money on luxury items
• Investing in high-risk stocks immediately
• Avoiding any financial planning
• A commitment to save money