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Chapter 3--Savings

Total questions: 17

Worksheet time: 10mins

Name
Class
Date
1.

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

a)

Invest in the stock market

b)

Are paying for things in your past

c)

Put money in a bank account

d)

Make less than $35,000

2.

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

a)

Start putting it toward debt

b)

Invest it in the stock market to grow

your money

c)

Save it until you have an emergency

d)

Use the money to pay for health insurance

3.

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

a)

Once you have a fully funded emergency

fund

b)

Once you're out of college, living debt-free,

and have 3–6 months of living expenses saved

c)

When the stock market is performing

really well

d)

As soon as you have extra cash

4.

If you really want to save money, you've got to . . .

a)

Fly economy class

b)

Live on less than you make

c)

Invest in a Roth IRA

d)

Have a financial advisor

5.

The only place you should keep your emergency fund money is...

a)

A savings account or money market account.

b)

A safe in your bedroom

c)

A Roth IRA

d)

An envelope in a safe place

6.

The interest rate on a savings account determines . . .

a)

How much money you need to have to open

the account

b)

How much you will pay the bank to manage

the account

c)

The amount of time your money will be in

the account

d)

How quickly your money will grow over time

7.

____________ is a millionaire's best friend.

a)

Accrued interest

b)

Compound interest

c)

High returns

d)

Profit sharing

8.

The main reasons for saving your hard-earned money are . . .

a)

Emergencies, large purchases, and wealth

building

b)

Paying for your dream home, buying your

dream car, and going on your dream vacation

c)

Buying gifts, donating to charities, and

building up a college fund for your kids

d)

Investing, indulging, and influencing

9.

The top three careers reported among millionaires were _____, ______, and _______.

a)

Pro athletes; bankers; CEOs

b)

Lawyers; surgeons; accountants

c)

Celebrities; developers; writers

d)

Accountants; engineers; teachers

10.

While saving money isn't easy at first, it will make your life a lot in the future if you

make it a habit now.

a)

Easier

b)

Harder

c)

Poorer

d)

Longer

11.

One of the main reasons we build wealth is so that we can . . .

a)

Give to those in need

b)

Spend it all on ourselves

c)

Impress the people around us

d)

Prove that we are successful

12.

Which principle says that a certain amount of money today is worth more than the same amount in

the future?

a)

Inflation

b)

Rate of return

c)

The time value of money

d)

Principal interest

13.

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

a)

Working a high-paying job and relying on a

trust fund

b)

Always paying off your credit card on time

and putting extra money into a retirement

account

c)

Investing into the right stocks and using a

private CPA

d)

Consistently investing money and patience

to give it time to grow

14.

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

15.

An investment's (a)   is its percentage of gain or loss over time.

16.

Do you have a savings account?

a)

Yes

b)

No

17.

Do you feel like you will be able to save money and build wealth when you are older?

a)

Yes

b)

No