CHAPTER 3 SAVING MONEY EXAM UPDATED ACTUAL
QUESTIONS AND CORRECT ANSWERS
◉ money limitations
Answer: You'll have less freedom with your money if you are paying old debts
◉ Emergency fund
Answer: Once you have a $500 emergency fund, you should save the money until you have an
emergency. You should rely on this money so you do not have to go into debt during an emergency. Is it
unexpected necessary, and urgent?
◉ large purchases
Answer: The first step you should take when you want to make a large purchase is decided the time
and amount you need to save.
, ◉ To start investing
Answer: The best way to build wealth is to start investing early. You should start investing money once
you are out of college, living debt free, and have 3-6 month worth of living expenses saved
◉ Saving account
Answer: Account on which interest is paid on funds deposited by the account holder because the bank
pays you to use your money
◉ Not if...
Answer: but when an emergency happens
◉ If you really want to save money, you've got to . . .
Answer: live on less than you make
◉ Saving account/money market account
QUESTIONS AND CORRECT ANSWERS
◉ money limitations
Answer: You'll have less freedom with your money if you are paying old debts
◉ Emergency fund
Answer: Once you have a $500 emergency fund, you should save the money until you have an
emergency. You should rely on this money so you do not have to go into debt during an emergency. Is it
unexpected necessary, and urgent?
◉ large purchases
Answer: The first step you should take when you want to make a large purchase is decided the time
and amount you need to save.
, ◉ To start investing
Answer: The best way to build wealth is to start investing early. You should start investing money once
you are out of college, living debt free, and have 3-6 month worth of living expenses saved
◉ Saving account
Answer: Account on which interest is paid on funds deposited by the account holder because the bank
pays you to use your money
◉ Not if...
Answer: but when an emergency happens
◉ If you really want to save money, you've got to . . .
Answer: live on less than you make
◉ Saving account/money market account