What is the benefit of having financial security? (1 point)
• ability to avoid stress and gain a sense of control
• ability to stop saving money
• ability to quit working and enjoy yourself
• ability to spend as much as you want
The benefit of having financial security is the ability to avoid stress and gain a sense of control.
What is a key requirement of a savings plan? (1 point)
• to prioritize saving regularly without exception
• to save any money that has not been spent
• to prioritize saving money when it is convenient
• to save money whenever you are at the bank or an ATM
A key requirement of a savings plan is to prioritize saving regularly without exception.
Which is a benefit of using auto-deposit to implement a savings plan? (1 point)
• Auto-deposit insulates the saver so that they do not have to change their behaviors.
• The deposit occurs automatically, so there is less temptation to spend the money.
• Using auto-deposit removes the responsibility from the saver.
• There is little inherent benefit to using auto-deposit.
A benefit of using auto-deposit to implement a savings plan is that the deposit occurs automatically, so there is less temptation to spend the money.
Which option describes an emergency fund?
(1 point)
• Low-risk investments in case something bad happens.
• A quantity of money set aside in case something bad happens.
A quantity of money set aside for an expense that you anticipate, such as buying a car or a
O house.
• A mutual fund that gives you an annual return to grow for retirement.
An emergency fund is described as a quantity of money set aside in case something bad happens.
How much should an emergency fund cover? (1 point)
• one month's expenses
- three months' expenses
• six months' expenses
• twelve months' expenses