Savings

Question 1

What is Personal Disposable Income?

Answer 1

The amount of money available to households after taxes

Question 2

What is GDP?

Answer 2

Gross Domestic Product; the value of goods and services produced in a country in a certain period of time

Question 3

According to the data from 1929-2009, when was personal saving the highest in the United States?

Answer 3

In the 1940s, during World War II (26%)

Question 4

What was the personal savings percentage in 2009?

Answer 4

4-4.2%

Question 5

When did personal savings peak after World War II?

Answer 5

In 1975 and 1981

Question 6

When did personal savings only decrease?

Answer 6

After 1981/1982

Question 7

In 1952, what percentage of the GDP was mortgage debt?

Answer 7

15%

Question 8

In 1952, what percentage of the GDP was consumer credit?

Answer 8

25%

Question 9

In 2009, what percentage of the GDP was mortgage debt?

Answer 9

75%

Question 10

In 2009, what percentage of the GDP was consumer credit?

Answer 10

95%

Question 11

What is revolving debt?

Answer 11

Debt that does not have a specific number of payments (e.g. credit cards)

Question 12

What is baby step #5?

Answer 12

Begin your children’s college fund

Question 13

What is baby step #6?

Answer 13

Pay off your house early

Question 14

What is baby step #7?

Answer 14

Build wealth and give

Question 15

What is a Sinking Fund?

Answer 15

A fund for a specific purpose to allow interest to work for you rather than against you.

Question 16

What is a Money Market Mutual Fund?

Answer 16

A mutual fund that seeks to maintain a stable share price and to earn current income by investing in interest-bearing instruments with short-term maturities.

Question 17

What are the 3 basic reasons for saving money?

Answer 17

Emergencies, large purchases, wealth building

Question 18

True or False: 78% of Americans will have a major negative event in a given ten-year period of time.

Answer 18

True

Question 19

How much should you start out with in an emergency fund?

Answer 19

$1,000 unless you make less than $20,000 a year then $500

Question 20

How much should be in your emergency fund after the first $500-1,000?

Answer 20

3-6 months of expenses

Question 21

What percentage of consumers live paycheck to paycheck?

Answer 21

70%

Question 22

True of False: 27% of Americans workers have less than $1,000 in savings.

Answer 22

True

Question 23

What is the savings rate for the average American family?

Answer 23

5.2%

Question 24

True or False: 25% of Americans have no savings at all. No retirement. No investments.

Answer 24

True

Question 25

What percentage of American workers have less than $10,000 in savings?

Answer 25

43%

Question 26

What percentage of Americans feel confident that they can save enough for their retirement?

Answer 26

16%

Question 27

What percentage of America’s millionaires are first-generation rich?

Answer 27

80%

Question 28

True or False: Only 22% of people 18-24 have enough savings to get them through 3 months without income.

Answer 28

True

Question 29

What is the 80/20 rule for saving?

Answer 29

80% behavior, 20% knowledge

Question 30

For most families, how much will be in a fully funded emergency fund?

Answer 30

$8,000 or more

Question 31

Where should you put your emergency fund?

Answer 31

In a Money Market Mutual Fund