INTRODUCTION Before You  Describe the  Learning difference between Outcomes simple and compound interest. Once you’ve completed this chapter’s videos, you will be Understand the to return to this list and place a checkmark next to the items  importance of beginning you’ve mastered. to save now. Saving: An Exercise of Section 1: Key Terms Character Identify the Five Foundations of personal finance.  Get to know the language of money. Understand the purpose of having an emergency fund.  » Compound interest: Interest paid on interest previously earned; Section 2: Three Basic Reasons to Save credited daily, monthly, quarterly or semiannually Money Emergency fund: Five hundred dollars » Explain the three basic reasons for saving money.  in readily available cash to be used only in the of an emergency; the Understand the importance of saving for both long-term  goal of the First Foundation and goals. » Interest rate: Percentage paid to a Describe what a sinking fund is and identify purchases  lender for the use of borrowed for which you would use a sinking fund. (in debt); percentage earned on invested principal (in investing) The of Compound Interest Section 3: » Five Foundations: The five steps to financial success Demonstrate how compound interest works and  » Sinking fund: Saving money over understand the impact of annual interest rate. time for a large purchase
INTRODUCTION Before You  Learning Outcomes Once you’ve completed this chapter’s videos, you will be to return to this list and place a checkmark next to the items you’ve mastered. Section 1: Saving: An Exercise of Character  Identify the Five Foundations of personal finance.  Understand the purpose of having an emergency fund. Section 2: Three Basic Reasons to Save Money  Explain the three basic reasons for saving money.  Understand the importance of saving for both long-term and goals.  Describe what a sinking fund is and identify purchases for which you would use a sinking fund. Section 3: The of Compound Interest  Demonstrate how compound interest works and understand the impact of annual interest rate.  Describe the difference between simple and compound interest.  Understand the importance of beginning to save now. Key Terms Get to know the language of money. » Compound interest: Interest paid on interest previously earned; credited daily, monthly, quarterly or semiannually » Emergency fund: Five hundred dollars in readily available cash to be used only in the of an emergency; the goal of the First Foundation » Interest rate: Percentage paid to a lender for the use of borrowed (in debt); percentage earned on invested principal (in investing) » Five Foundations: The five steps to financial success » Sinking fund: Saving money over time for a large purchase
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