Unit 3 - Personal Finance

What is the difference between a need vs a want?

What are the 3 rules of spending habits?

What is the definition of Liquidity?

How big should your emergency fund be?

• 1-2 months of your annual salary

• 3-6 years of your annual salary

• 3-6 months of living expenses

• 1-2 years of living expenses

What is a savings tool with a fixed intrest rate and maturity date?

• Checking Account

• Certificate of Deposit (CD)

• Money Market Account

• Savings Account

____ for savings is an example of a good savings strategy.

Which type of account has a maturity date?

• Certificate of Deposit (CD)

• Savings Account

• Checking Account

• Money Market Account

Which type of account increases the interest rate with greater balances?

• Certificate of Deposit (CD)

• High Yield Checking Account

• Tiered Savings Account

• Retirement Account

A way to start saving money is to open a basic savings account and

• A High Interest Checking Account

• A CD

• A Retirement Account

• A No-Fee Checking Account

Compound Interest is calculated on the ___ rather than the principal. (You will have to calculate Compount Interest)