Question

True or False: Analyze each statement to determine if it is true or false. If it is false, change the statement to make it true.

1. The first thing you should save for is your retirement fund.

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2. Using pre-authorized checking helps you save money.

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3. Your first Baby Step is to pay off all of your debt.
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4. A money market mutual fund is the best place for your fully funded emergency fund.

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5. A sinking fund makes money grow over time by adding interest to previous interest earned.

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6. Dave’s 80/20 rule says personal finance is 80% knowledge and 20% behavior.

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7. The rate of return matters when it comes to compound interest.

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8. Using a race analogy to describe building wealth, saving is most like a sprint.

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9. You should invest 10% of your household income into Roth IRAs and pre-tax retirement plans.

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10. Murphy’s Law is more likely to strike if you are prepared for the unexpected events that occur throughout life.

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Answer 1

1. The first thing you should save for is your retirement fund.

False. Emergencies!

2. Using pre-authorized checking helps you save money

TRUE

3. Your first Baby Step is to pay off all of your debt.

False. The first baby step is to save $1000 dollars for emergency funds.

4. A money market mutual fund is the best place for your fully funded emergency fund.

TRUE

5. A sinking fund makes money grow over time by adding interest to previous interest earned.

FALSE

6.Dave’s 80/20 rule says personal finance is 80% knowledge and 20% behavior

FALSE

7.The rate of return matters when it comes to compound interest.

TRUE

8.Using a race analogy to describe building wealth, saving is most like a sprint.

FALSE. Saving is like a marathon.

9.You should invest 10% of your household income into Roth IRAs and pre-tax retirement plans.

FALSE. 15%

10. Murphy’s Law is more likely to strike if you are prepared for the unexpected events that occur throughout life.

FALSE