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LET’S PRACTICE
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5. What are some typical variables that can impact the amount a person should have in their emergency savings account? _ ______________________________________________________________________________ _ ______________________________________________________________________________ 6. What are some typical short term financial goals and timelines ? _ ______________________________________________________________________________ _ ______________________________________________________________________________ 7. What are some typical long term financial goals and timelines ? _ ______________________________________________________________________________ 8. Why should you have specific and measurable financial goal (s)? _ ______________________________________________________________________________ _ ______________________________________________________________________________ 9. Regarding simple interest , is the interest earned added to the principal and reinvested? _____ 10. An investment of $1000 earning simple interest of 5% per year would be worth how much in 5 years? _ ______________________________________________________________________________ 11. An investment of $1000 that earns compound interest of 5% per year would be worth how much in 5 years? _ ______________________________________________________________________________ 12. What does the Rule of 72 estimate? _ ______________________________________________________________________________ 13. David’s household budget provides for a savings deposit “if and when” money is available for it. Basically saving is a low priority item. Even his family’s Thursday night sushi and pizza fest has priority over their savings. What’s your advice? _ ______________________________________________________________________________ 14. Describe a round up account and tell its benefits as a saving or investment tool. _ ______________________________________________________________________________ _ ______________________________________________________________________________ _ ______________________________________________________________________________ _ ______________________________________________________________________________ No. PRODUCT PREVIEW
Chapter 8 | Super-Size Your Savings 144
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