Foundations Savings Unit 3 Review

Front

What are the three basic reasons to save money?

Back

Emergency fund, purchases, and wealth building.

Front

What is a Sinking Fund?

Back

Saving money over time for a large purchase.

Front

What does it mean to make a Deposit?

Back

Turning your money over to a financial institution for safekeeping.

Front

Why is having a fully funded emergency fund important?

Back

It provides a sense of financial security and sets money aside for unexpected financial emergencies.

Front

What are the Five Foundations in financial success?

Back

The five steps to financial success.

Front

What is an Emergency Fund?

Back

Money set aside for unexpected financial emergencies.

Front

What is the purpose of saving for large purchases?

Back

To avoid debt and manage finances effectively.

Front

What is the difference between a Sinking Fund and an Installment Fund?

Back

A Sinking Fund is for saving over time for a large purchase, while an Installment Fund is for making regular payments on a purchase.

Front

What is the first step in building an emergency fund?

Back

Set a specific savings goal.

Front

How much should you ideally have in your emergency fund?

Back

Three to six months' worth of living expenses.