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Savings
Personal Finance
Question | Answer |
---|---|
The persistent rise in the cost of goods and services. | inflation |
Why don't people save money? | Lack of discipline and focus, no budget |
A fully funded emergency fund should be how much? | $500 |
What is interest paid on interest previously earned? | Compound interest |
Do Americans typically maintain a high rate of savings? | NO |
What are the three reasons to save money? | Emergency fund, purchase, and build wealth |
Is the emergency fund intended to build wealth? | No |
Using the sinking fund approach, how much do you have to save each month to buy a $4800 car a year from now? | $400 |
Money today has different buying power than the same amount of money in the future. | Time Value of Money |
This compares after-tax income to the money people spend on a variety of items | Savings Rate |
Should your savings be determined by your spending? | No, opposite. Let your spending be determined by your savings. |
Does the amount of money you make effect your savings HABITS? | NO |
What is an interest bearing account? | An account that earns interest |