Personal Finance Chapter One Savings

Question 1

What percent of consumers live paycheck to paycheck

Answer 1

70%

Question 2

The United States has a ______% savings rate

Answer 2

-.6%

Question 3

What percent of Americans save regularly

Answer 3

41%

Question 4

How many Americans live on less than $46,326 a year

Answer 4

Half

Question 5

___% of teens agree “it’s important to me to have a lot of money”

Answer 5

81

Question 6

Only ___% of teens say that they know how to invest money to make it grow

Answer 6

22%

Question 7

____% of teens have some money saved, with an average of $1,044

Answer 7

84

Question 8

____ in ____ (24%) of teens agree that since they are young, saving money isn’t that important

Answer 8

1 in 4

Question 9

______ must become a priority. Always pay _______ first

Answer 9

Savings

Yourself

Question 10

Saving money is about ______ & ________

Answer 10

Emotion

Contentment

Question 11

Money is

Answer 11

Amoral

Question 12

Three basic reasons why you should save money

Answer 12

1. Emergency fund
2. Purchases
3. Wealth building

Question 13

_______ are going to happen. Count on it

Answer 13

Emergencies

Question 14

A great place to keep your emergency fund is in a ______ _______ account from a mutual fund company

Answer 14

Money market

Question 15

Your emergency fun is not an _____ it is ______

Answer 15

Investment

Insurance

Question 16

Do not touch your emergency fund for….

Answer 16

Purchases

Question 17

What is your first savings priority

Answer 17

The emergency fun

Question 18

The second thing you save money for is _____

Answer 18

Purchases

Question 19

Instead of borrowing to purchase, pay cash using the ______ _____ approach

Answer 19

Sinking fund

Question 20

Define sinking fund approach

Answer 20

Save until you can pay for it in cash, this avoids interest/debt

Question 21

The third thing you save money for is…..

Answer 21

Wealth building

Question 22

______ is a key ingredient when it comes to wealth building

Answer 22

Discipline

Question 23

Building wealth is a _____ not a sprint

Answer 23

Marathon

Question 24

What does PAC stand for

Answer 24

Pre-authorized checking

Question 25

What is Pre-authorized checking

Answer 25

Withdrawals are a good way to build discipline

Question 26

_______ ________ is a mathematical explosion. You must start ____

Answer 26

Compound interest

Now

Question 27

How to calculate compound interest

Answer 27

FV=PV(1+r/m)^mt

Question 28

What is compound interest

Answer 28

Ernest paid on interest previously earned

Question 29

Rate of return or _____ ______ is important

Answer 29

Interest rate

Question 30

What is the 80/20 rule

Answer 30

Handling money is 80% behavior and 20% head knowledge