Name_________________ Personal Finance Mr. Squires Unit 4 Questions - Please answer in complete sentences. Write your answers in the space provided. 1) How can you develop the habit of saving? 2) What is the difference between saving and investing? 3) What does the “time value of money” mean? Why is it of great value to you now? 4) What is compounding? Give an example. 5) What is the difference between a stock and a bond? 6) How do you use the Rule of 72? 7) How does a mutual fund work?