Life Skills "I want more Pizza"

Which of the following are not a mental block?

"I have a trust fund, I'm set."

5 step process for critical thinking

1. Formulate your Question 2. Gather your information 3. Apply the information a. concept b. assumptions c. interpretation d. logically sound 4. Consider the implications 5. Explore other points of view

From the TED talk about "Critical Thinking" what is the 5 step process to approach critical thinking?

1. Formulate your question 2. Gather your information 3. Apply the information 4. Consider the implications 5. Explore other points of view

Give me three of the most common unexpected expenses:

1. Medical 2. Car problems 3. House expenses/repairs

There are two primary financial risks associated with debt.

1. Pay interest/interest/bad interest 2. Risk of overspending

What are the common forms of investing? 1._______________ account 2. Certificate of ______________. 3. Stocks 4. US Treasury ________________. 5. Mutual Funds

1. Savings 2. Deposit 4. Bonds

This book focuses not the foundation of personal finance, and it focuses on three catigories:

1. overcome your mental block 2. save 3. don't get into trouble with debt or

What are 2 topics Steven touching on in this chapter?

Auto saver and prioritization

After using certain tools, you have turned $12,000 in your account into $50,000 over the span of 40 years. This method is called:

Auto-Saver

What 2 steps did Steven talk about in regards to the Auto-Saver approach with your money?

Creating two bank accounts and Establishing recurring transfers.

How can critical thinking improve your chances of making better choices?

Critical thinking provides you the tools to sift through complex information logically.

What is considered to be a "lower risk" investment?

Diversified, Long-Term

What item(S) will you need to complete your FAFSA application?

Driver's license, Social security number, tax return for the prior year

(True or False) "Beware of large expenses: a big leak will sink a great ship."

False

(True or False) "Use unexpected income as an opportunity to get what you've been saving for 5 months."

False

(True or False) "What is the least important is that you see the problem before it is too late and adjust your spending accordingly.

False

(True or False) 15% in considered a realistic rate of return for mutual funds.

False

(True or False) About 40% of Americans have stress related to money.

False

(True or False) According to a Gallup poll, the average retirement age in America is quickly approaching 80 years old.

False

(True or False) Article 12 recommends that you check your New Worth once every 2 years.

False

(True or False) Compound growth is the draw-back of investing.

False

(True or False) Many people don't plan bonuses into their lifestyles. That is a quick way to get into financial trouble.

False

(True or False) Most young adults don't feel that if they do more than the minimum, the company is taking advantage of them.

False

(True or False) People with credit cards spend 20-30% more on average when compared to people who only use cash/ or debit cards.

False

(True or False) Saving starts out easy and continues to be a habit.

False

(True or False) Since you are young, you're not capable of doing something that will negatively impact your finances.

False

(True or False) Steve (the author) never took a risk with his savings account.

False

(True or False) When investing you can only make money.

False

Rule of thumb with coupons: (True or False) "More importantly, coupons give you the opportunity to buy products because they are discounted. Use coupons so that you may acquire items you have been waiting for."

False

(True or False) Capital One research shows that only 25% of teens have acted ad taken on a financial literacy topic.

Fase

What is one advantage of critical thinking?

It's a process that helps us reveal hidden issues and manipulation.

From Principle 6 in the article passes out in class, what is the theme of the chapter?

Networking, Keeping in touch friends/associates

What is considered to be a "higher risk" investment?

Not Diversified, Short-Term

Which of the following are not one of the benefits mentioned in Principle 17?

Pregnancy leave

______________ is called when you have a credit card ballance.

Principle

Rather than choosing an answer because it feels right, a person who uses critical thinking __________ all available options to scrutiny and ______________.

Subject, skepticism

Net worth is _______________________.

The dollar value you are worth.

Who should you contact if your situation has special circumstances which the FAFSA may not take into account?

The financial aid officer at the school to which you are applying

When making a decision, what is the main purpose of gathering facts and information?

To weigh out various options or choices

(True or False) "If you can, you will quickly find that the greatest rate of return you will earn is on your own personal spending. Being a smart shopper is the first step to getting rich."

True

(True or False) "Whether you realize it or not, they (employers from your first couple of jobs) are paying you to learn. Most young adults don't take advantage of this opportunity and put in the bare minimum needed to get the job done."

True

(True or False) Bonuses should be treated like a pleasant surprise, not expected.

True

(True or False) Do not save what is left after spending, but spend what is left after saving.

True

(True or False) Fewer than 3% of people use coupons.

True

(True or False) If you understand the risk of benefits of debt, you'll see there's no right answer for everyone(in regards to debt), but there is a right answer for you.

True

(True or False) In addition to higher wages, decreasing your spending is another way to have more money.

True

(True or False) Investing is when you lend money to or pay to acquire ownership in, another party such as a bank, the government, or a company with the expectation that after time, the other party will repay you more money than you originally provided them.

True

(True or False) It's the convenience of a credit card that gets people into trouble.

True

(True or False) More time equals more money.

True

(True or False) Not overspending and living beyond your means is a good decision with debt.

True

(True or False) Prioritization can be understood as having the choice every day on what you decide to do with your money.

True

(True or False) Some credit cards try to charge people annual fees, so potentially avoid these credit cards.

True

(True or False) Student loans may or may not cover all your college costs and, if not, you may need to pay for these excess costs on your own.

True

(True or False) Taking the initial (or the first) action in life and with your finances is crucial. No matter how much you know about personal finance, none of that will matter until you take action and do something about it.

True

(True or False) The $5 coffee is actually the larger financial decision to make

True

(True or False) The average debt for high school seniors is $1,600.

True

(True or False) The number one problem in today's generations and economy is the lack of financial literacy.

True

(True or False) You are your best friend when it comes to success at personal finance, but, unfortunately, you are also your worst enemy.

True

(True or False) You have an advantage with personal finance over most people because you have time on your side.

True

(True or False) You have required to pay back the loans whether you graduate college or not.

True

(True or False) no one can pick a good investment every time.

True

What are liabilities?

What you owe

Do you think the auto-saver technique is a method to teach you how to start your retirement funds?

Yes

In the 1st slice of the book it talks about YOU. What are the 4 "your" selections of the chapter?

Your advantage, action, goals, prioritization

Debt is also known as ___________ or a _________. Simply debt is whenever someone ____________ you money.

credit loan lends/loans/borrows

Your ___________________, which is automatically calculated on your behalf, indicates the likelihood of you repaying your debts.

credit score

There are many ways to improve our chance of making decisions and one particular effective techinque is _______________________.

critical thinking.

A _____________ is another form of cash, your own cash. It's linked to your bank account, and when you make a purchase it takes money directly out of our account.

debit card

Critical thinking allows us to carefully ________________________________, reveal its hidden issues, such as _________ and __________ and make the best decision.

deconstruct a situation, bias, minipulation

Considering the implications of a decision means:

examining its potential outcomes and effects.

What is the first step (of Five) in the critical thinking process?

formulate questions

College is another form of _____________.

investment

If you get a credit card, __________ it _________ in ___________ and on ____________.

pay, back , full, time

Which of the following investment has the lowest risk?

savings accounts

A _____________________ is the maximum balance you can charge to your credit card.

spending limit

Credit card ______________ list each purchase you made in a month and are easy to review.

statements

What did Mr. Siegel (the author) mention in Principle 15 about school?

that school is important

Every financial decision you make involves two sides. They are:

the item you are buying and the item you are giving.

When making a decision, what is the main purpose of gathering facts and information?

to weigh out various options or choices

What are assets?

what you own

"The simple rationale for this (having an emergency fund) is that something will go ______ and you'd better have the _________ to pay for it. In addition, something may go ___________ and you'll need to have the funds to be able to _______ it."

wrong, funds, right, enjoy

What is the website for the FAFSA?

www.FAFSA.ed.gov

The "Auto-Saver" method is designed to trick who?

yourself