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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 |
Created by:
lbeddow