Personal Finance Final Exam Review

Front

The first three baby steps are: $1,000 in Emergency Fund, Debt Snowball, 3-6 months of expenses in Emergency Fund

Back

$1,000 in Emergency Fund, Debt Snowball, 3-6 months of expenses in Emergency Fund

Front

How much should you invest for retirement? Options: 10%, 15%, 20%, 25%

Back

15%

Front

The 5th Baby Step is

Back

College Fund

Front

Which type of interest is calculated off of both the money you have invested and also the money you have earned in interest?

Back

Compound

Front

Where should you keep your emergency fund? Options: Mutual Fund, Single Stock, Savings Account, Money Market

Back

Money Market

Front

The 7th Baby Step is

Back

Build wealth and give

Front

Diversification increases risk when investing.

Back

False

Front

The 6th Baby Step is

Back

Pay off House

Front

How much money is in a partially funded emergency account?

Back

$1,000

Front

Which type of IRA has taxes taken out when you take the money out of the account?

Back

Traditional