1. PAY YOURSELF FIRST

Compound interest is the interest that is divided into different accounts.

False

Identify tips that help you save.

Save any extra money you get as a raise or bonus from your employer. If your employer offers a retirement plan, join it. Avoid debt. Pay your bills on time to avoid late fees and finance charges. Use direct deposit or set up your account to automatically transfer money directly into savings. When you get a tax refund, save it. If you receive cash as a gift, save at least part of it.

Match the terms to their definition.

compound interest - interest the bank gives on the interest that has been already earned principal - the original amount of money invested or deposited into a savings account return - the profit or gain from saving or investing money Rule of 72 - a formula that helps you calculate how long it will take for your savings to double in value

Use the Rule of 72 to solve. Manny has his money in a savings account earning 4.5% interest. How long it will take his money to double?

sixteen years

The formula for the Rule of 72 is _____.

years to double equals 72 divided by the interest rate