Financial Literacy Ch. 2-dave ramsey

The persistent rise in the cost of goods and services

Money set aside and left alone for a "rainy day"

Americans typically maintain a very high savings rate.

Your income level greatly affects your saving habits.

An interest-bearing acct is an acct that generates interest on balance n the account

Sinking fund how much do you have to save each month to buy a $4800 car n 1 yr?

What are the essential elements of wealth building?

When you're in HS you won't have the same emergency expenses as your parents.

Saving money over time for a large purchase

What 2 things do you consider when evaluating the time value of money?

When a person intentionally invests money in a place where it can earn more money

When you're older,out of school u'll need2grow ur emer. fund n2 3-6 mo. worth of expenses

Saving is about:

You should save money for 3 basic reasons: emerg. fund, purchases & wealth building.

For which of the following should you save?

Which of these is NOT a key to saving money?

Which of the following is a reason that people don't save money?

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

You should hold off on investing for retirement until you have college paid for.

Why do you need an emergency fund at your age?

Interest paid on interest previously earned

Which is NOT a reason2keep emergency fund n separate savings account from ur spending money?

The first thing you should save for is your retirement fund.

Calculate the compound interest if interest is compounded annually: $1000 at 6% for 3 yrs

What are the Five Foundations?

You should keep your emerg. fund in the same account as your spending.

Compares after-tax income to the money people spend on a variety of items

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

$ today has different buying power than the same amount in the future. (No interest, inflation)

What does it mean to have a negative savings rate?

Percentage paid to a lender for the use of borrowed money, the % earned on principal

When saving$ the amount u save is determined by how much u have left@end of mo after spending

Why is having a fully funded emerg. fund important when it comes to your financial well-being

Money today has different buying power than the same amount of $ in the future

First foundation says save $500 emerg. fund. Why will this increase over time?

Don't borrow money for large purchases. Instead, you should set money aside in a ___ over time

Why should interest earned NOT be a factor w/ your emerg. fund?