# Personal Finance Level 4: Saving and investing (free quiz and certificate) | Get Certified for Free

Source: https://getcertifiedforfree.com/courses/personal-finance/level-4/

Personal Finance · Level 4 of 5 · Advanced

# Saving and investing

Compound growth, retirement accounts, diversification, and fees.

## Study notes

1. Compound growth means earnings generate their own earnings over time. Starting earlier gives money more time to grow.
1. Workplace plans like a 401(k) or 403(b) may include an employer match. Not contributing enough to get the full match leaves money on the table.
1. IRAs come in traditional (possible tax deduction now, taxed later) and Roth (no deduction now, qualified withdrawals tax free) versions. Contribution limits are set by the IRS each year.
1. Diversification spreads money across many investments so one failure does less damage. Index funds hold many stocks or bonds at low cost.
1. Fees compound too. An expense ratio of 1% versus 0.05% can cost a large amount over decades.

## Quiz: 6 questions

Choose one answer for each question, then check your answers. Score 5 of 6 to pass. Then enter your name and email to download a PDF certificate and have a copy emailed to you. Answers are graded in your browser.

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