FINANCIAL LITERACY CHAPTER 2

Your income level greatly affects your saving habits.

Which of these is not a key to saving money?

Interest paid on interest previously earned

Building wealth is a

Why is having a fully funded emergency fund so important when it comes to your financial well-being?

Persistent increase in the cost of goods and services

Millionaires

Saving money over time for large purchase

What does it mean to have a negative savings rate?

Most millionaires are ...

For which of the following should you save?

Using the sinking fund approach, how much do you have to save each month to buy a $4,800 car one year from now?

Saving is about contentment and:

Which of the following is not one of the three basic reasons for saving money?

A rate which is either charged or paid for the use of money is called an

What is a mathematical explosion?

Which of the following is a reason that people donʹt save money?

At your age, a fully funded emergency fund should be:

A savings account that is set aside to be used only for emergency expenses

The five steps to financial success

An account that generates interest income on the available balance in the account