Chapter 2- Saving Flashcards
1
Q
Five hundred dollars in readily available cash to be used only in the event of an emergency; the goal of The First Foundation
A
Emergency Fund
2
Q
Percentage paid to a lender for the use of borrowed money (in debt); percentage earned on invested principal (in investing)
A
Interest Rate
3
Q
The five steps to financial success
A
Five Foundations
4
Q
Saving money over time for a large purchase
A
Sinking Fund
5
Q
Interest paid on interest previously earned; credited daily, monthly, quarterly, or semiannually
A
Compound Interest
