✅ Checkpoint: Financial Stability and Debt Payoff

By Better Wise

Quiz

  1. You are sizing your emergency fund. Which figure should you multiply by 3 and by 6 to get your target range?
    • Your total monthly essential expenses
    • Your total debt balances
    • Your total monthly spending, essential and optional
    • Your monthly take-home income
  2. Your essentials total $2,400 a month and you already have $600 saved. What is your gap to the 3-month target?
    • $7,200
    • $1,800
    • $6,600
    • $13,800
  3. Where should your emergency fund cash sit?
    • In your available credit card limit
    • In an index fund so it grows while you wait
    • In a separate, liquid savings account you do not see in your daily app
    • In your daily checking account so it is easy to reach
  4. Your emergency fund target is $7,200 and you want to reach it over 24 paychecks. What is the per-paycheck automatic transfer?
    • $600
    • $7,200
    • $300
    • $150
  5. In the avalanche method, which debt receives all of your extra money each month?
    • The debt with the highest interest rate
    • The debt with the largest minimum payment
    • The debt with the smallest balance
    • The extra money is split evenly across all debts
  6. Which statement about avalanche and snowball is true?
    • Avalanche usually pays less total interest, while snowball usually produces the fastest first win
    • The two methods use completely different mechanics
    • Snowball usually pays less total interest because small balances clear fast
    • Avalanche lets you skip minimum payments on debts you are not targeting
  7. In both avalanche and snowball, when a debt is cleared its old payment is ____ into the next target debt instead of going back into your spending.
  8. Build your own one-page plan with two parts: (1) an emergency fund target and per-paycheck transfer, and (2) a debt payoff order and first two months of a schedule. Then rate your work against the rubric.

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