Help
Options
Didn't know it?
click below
click below
Knew it?
click below
click below
Don't Know
Remaining cards (0)
Know
retry
shuffle
restart
0:00
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
personal finance 1
| Question | Answer |
|---|---|
| saving money for a purchase and letting interest work for you rather than against you | sinking fund |
| baby step 3 | 3-6 months of expenses |
| baby step 1 | $500/$1000 in an emergency fund |
| if it can go wrong, it will; unexpected events | Murphy's law |
| Emergency fund goes here | money market |
| key to wealth building | discipline |
| interest on interest | compound interest |
| money is neither good nor bad | amoral |
| For most people, Fully- Funded emergency fund will be about | 10,000-15,000 |
| Ben and Arthur illustrate which principle of saving | compound interest |
| Baby step 1 and 3 have to do with | saving emergency fund |
| you should save for the following | emergency fund, purchases, and wealth building |
| how many baby steps are there | 7 |
| saving is about contentment and | emotion |
| the following is true about pre-authorized checking | helps build discipline with saving |
| the savings habits of Ben and Arthur help to illustrate the principle of compound interest | true |
| dave's 80/20 rule says when it comes to money, 80% is head knowledge and 20% is behavior | false |
| your income level greatly affects your savings habits | false |
| interest is money paid to a saver by a financial institution | true |
| the correct order for using your money is; pay bills, save, then give | false |
| why do you think the US has a negative savings rate? How does this relate to your personal savings habits. | We're not really taught how to save money and with the internet and social media we're encouraged to spend our money. I have also been influenced to buy something I saw on social media and the interenet, and I think alot of people are. |
| Baby step 1-4 | 1. 1,000 in an emergency fund or 500 if you make less than 20,000 2. Pay off all debt except the house utilizing the debt snowball 3. three to six months expenses in savings 4. Invest 15% of your household income into Roth IRAs and pre-tax retirement |
| Baby step 5-7. And why do you think Dave skips baby step 2. | 5. College funding 6. Pay off your home early 7. Build wealth and give. Dave skips baby step 2 because step 1 and 3 deal with emergency funds. |
| Explain the relationship between having an emergency fund and Murphy's Law | The Murphy's law is anything can and will go wrong, so having an emergency fund is important to cover those disasters. |
| what are the three primary savings goals | 1. emergency fund 2. purchases 3. wealth building |
| what changes can you make now in your own life based on what you saw in the video? How will these changes help? | I can save up money for things instead of just buying them right away. By doing this I'm being taught discipline and a sense of achievment by saving up a certain amount to buy what I want. |
| Why do you need an emergecy fund at your age? | To cover unexpected emergencies, and it prepare me for an emergency |
| How does compound interest differ from simple interest | Compound interest grows faster than simple interest because you are earning interest on interest. |
| Why do you need to save $1000 in the bank before paying off debt | So you have an emergency fund if something were to happen so you don't have to borrow money |
| what was the most important piece of information or concept you learned from this lesson? How can you apply it to your life? | The compound interest and Roth IRA. Now I know how to save and build up my wealth and how to properly manage my money like you taught us with the word sheets. |
| Jeremy has been out of school for two years. Although he has %6,500 in debt left to pay, he is making more than the minimum payments and should be debt free in 15 months. Should he continue to save or pay off his debts? | Jeremy is only on baby step 2, which is paying off debt so I think it's too early for him to start investing. |
| Melissa is about to get a $200 per month raise. She has $500 in her savings account. She also has $1,000 in available credit remaining on her credit card and is thinking about using it to buy everything now. What would you tell Melissa? | I would tell Melissa she needs to save some more and raise her savings to 1000. And that she should just save up for the new furniture and pay in cash rather than using a credit card. |
Created by:
fjakdfjlsajdf