Chapter 3 Test

45% of Americans have less than $1000 saved for a(n)

• Emergency

• Car

• Retirement fund

• New Smartphone

Once you have a 500 emergency fund, you should....

• Start putting it toward debt

• Invest it in the stock market

• Save it until you have an emergency

• Use the money to pay for health insurance

The first step you should take when you want to make a large purchase is....

• Ask your parents to loan you the money with low interest

• get a new credit card

• Decide how much you'll need to save and the time frame you want to save it in

• Sell something and use the proceeds

It's not IF an emergency will happen, but​ (a)  

• when
• how
• where
• why

If you really want to save money, you've got to

• Fly economy class

• Live on less than you make

• Invest in a Roth IRA

• An envelope in a safe place

You should budget in this order: giving, savings, spending

• True

• False

The purpose of an emergency fund is to....

• Be able to cover an unexpected expense with cas and protect you from having to pile up debt when something goes wrong

• Teach you how to invest in growth stock mutual funds

• ave some extra money in a checking account in case you need to transfew some to your spending categories

What is the goal of an emergency fund?

• To pay for large purchases

• To save for your children's college expenses

• To have cash on hand for unextected events

• To pay for health insurance

While saving money isn't easy at first, it will make your life a lot ​ (a)   in the future if you make it a habit now.

• easier
• poorer
• harder
• longer

Which of these would count as a legitimate reason to use your emergency fund?

• You forgot to budget for your mom's birthday gift

• You have a fancy event coming up but you already spent all of your Clothing budget category

• The smartphone you've wanted just went on sale

• Your car battery died