consumers math chapter 3

The First Foundation: Save a ---emergency fund.

$500

If you invested ----per month in mutual funds from age 25 to 65, you could have $3.6 million in a mutual fund.

$554

Contrast the difference between a financial emergency and nonemergency.

---

Having an emergency fund reduces drama and stress. Give two real-life examples of how an emergency fund could help reduce stress in your life.

----

5 foundations

1.save a $500 emergency fund, 2.get out of debt stay out of debt, 3.pay cash for car, 4.pay cash for college, 5.build wealth and be generous

----of Americans have less than $10,000 saved for retirement.

48%

In America, nearly ----out of 10 people live paycheck to paycheck.

8

What are some long-term consequences of not learning to save while you are young?

By not saving your money it also could mean you are not managing your money and spending effortlessly. This is a behaviour that could set you on a track to debt.

"Rate of return" is a phrase used to describe what aspect of investing?

Compound growth

Why is it important to make an emergency fund your first financial priority?

Creating an emergency fund provides you with a safety net when times get tough. Unlike taking out a high-interest loan or using a credit card, emergency funds allow you to pay for life's necessities interest-free.

You shouldn't take your investments out early. What do you think are some consequences of taking money out of your retirement early?

You may be subject to a 10% tax penalty for early withdrawal

If you make a late credit payment, you might see the lender add---

accrued interest to what you owe

Saving is ---a part of your budget.

always

When you make a purchase but later wish you hadn't done so, you experience . . .

buyers remorse

Avoid ---payments for life.

car

Save up and pay for things with--

cash

----is the average rate of growth for an investment over a period of time.

compound growth

Your money combined with interest over time creates---

compound growth

The first reason to save money is to build your -----fund.

emergency

You will have a financial -----at some point in your life.

emergency

47% of Americans have less than $1,000 saved for a(n)

emergency fund

The three reasons to save money are

emergency fund, large purchases, build wealth

Adults devise a plan and follow it. Children do what ---good.

feels

Saving gives you the freedom to be super---- with your money.

generous

Compound interest causes your money to---

grow

An emergency fund turns a crisis into an

inconvenience

The price of goods and services increases over time due to---

inflation

----deals—such as 90-days-same-as-cash—are often used to get you to buy higher-priced items.

interest rate

$100 ---per month from age 25 to 65 is $1,176,000.

invested

When talking about saving money, Anthony ONeal says, "Start paying yourself and---

investing in your future

What is the secret to becoming a millionaire?

investing the same amount of money every month at a young age and your money will grow overtime

What causes you to have money is you----- some of it.

kept

Why is self-discipline the key to becoming a good saver?

key to reducing one's debts therefore increasing the possibility of growing one's savings. ... Only with self-discipline that people recognize that they do have the freedom and power to do the right thing over doing as their impulses dictate.

The second reason to save is for ---purchases.

large

You save for a(n) ---when you don't have the cash to buy it now.

large purchase

What two elements do you need to build wealth through compound growth?

money invested and time

If you invest -----, you will have nothing.

nothing

In The Five Foundations, what is The Third Foundation?

pay cash for car

You need a---- to become a millionaire.

plan

The initial amount of money you deposit or invest is called the---

principal

An investment's---- is its percentage gain or loss over time.

rate of return

Interest that you pay is a penalty. Interest that you earn is a---

reward

What are two reasons Americans don't save more for retirement?

there in debt, and primary mortgage

The---- refers to the earning potential of money.

time value of money

An emergency is an ---expense.

unexpected

Everyday people can build---

wealth

The third reason to save is for---- building.

wealth

Money comes from --

work

Murphy's Law: If it can go--- , it will.

wrong