UNIT 1 - Chapter 1: SAVING Money in Review

Emergency Fund goes here

Lacking morals; neither good nor bad

Mutual fund that seeks to maintain a stable share price; earn current income by investing

The correct order for using your money is: pay bills, save, then give.

Baby Step 1

The saving habits of Ben and Arthur help to illustrate the principal of compound interest.

Interest is money paid to a saver by a financial institution.

The following is true about PACs:

Percentage paid to a lender for the use of borrowed money

Interest on interest

For most people, a fully-funded emergency fund will be about:

Baby Step 3

Key to wealth building

Your income level greatly affects your savings habits.

Ben and Arthur illustrate which principle of saving?

Baby Steps 1 and 3 have to do with:

System of automatic payment processing: bills/deposits/payments handled electronically

Saving money for a specific purpose to allow interest to work for you rather than against you.

How many Baby Steps are there?

Money is neither good nor bad

Saving is about contentment and:

Saving money for a purchase and letting the interest work for you rather than against you

The seven steps to a healthy financial plan

You should save for the following:

If it can go wrong, it will;unexpected events

Interest paid on interest previously earned

Three to six months of expenses in readily available cash; Baby Step 3.

Anything that can happen will happen

Dave’s 80/20 rule says when it comes to money, 80% is head knowledge and 20%is behavior.

Level of high importance or great urgency