Questions and Answers
$100 __________ per month from age 25 to 65 is $1,176,000.
invested
What percent of Americans have less than $10,000 saved for retirement?
48%
What do children do in contrast to adults who devise a plan and follow it?
they do what feels good
What does compound interest cause your money to do?
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Interest that you pay is a penalty. Interest that you earn is a __________.
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What is the definition of compound growth?
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What percent of Americans have $0 saved for retirement?
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Study Notes
Investing and Wealth Building
- Investing $100 monthly from age 25 to 65 can accumulate to $1,176,000 due to the power of compound interest.
Retirement Savings Statistics
- 48% of Americans have less than $10,000 saved for retirement, highlighting a significant gap in financial preparedness.
- 25% of Americans have no savings set aside for retirement, indicating a concerning trend toward inadequate retirement planning.
Financial Behavior
- Adults typically create and adhere to financial plans, while children often pursue immediate gratification or what feels good.
Effects of Compound Interest
- Compound interest enables money to grow over time, making it a crucial factor in building wealth.
Financial Rewards and Penalties
- Interest paid on loans or debts is considered a penalty, while interest earned from investments is seen as a reward, reinforcing the importance of smart investing.
Understanding Compound Growth
- Compound growth refers to the average rate at which an investment appreciates over time, commonly represented as an annual percentage.
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Description
Explore the fundamentals of investing and wealth building in this quiz. Learn about the impact of compound interest on savings and the importance of financial planning for retirement. Test your knowledge on financial behaviors and the rewards of smart investing.
