Personal Finance T/F
True
A good age to open a checking account is between the ages of 13 and 15
False
Cash advance and title pawn companies charge roughly the same interest rates and fees on loans as a credit card company
True
Diversification means to spread around
False
Henry Ford and J.C. Penney were pioneers in the use of credit
False
If we used a race analogy to describe building wealth, it would be most like a sprint
True
If your mortgage payment exceeds 25% of your net income, you have bought more house than you can afford
True
In order to have a FICO score, you must have debt
True
Increasing your deductible usually decreases the premium
True
It usually takes three months for your budget to begin working well
True
Liquidity is the availability of your money
True
Men and women have different views about money
False
Most often identity theft is committed by strangers
True
Never buy something you do not fully understand
False
Never roll over your 401(k) when you leave a company
False
Not every state has FICA tax withholdings
False
Once you have a fully-funded emergency fund, put 10% of your income into retirement plans
False
Personal finance is 20% behavior, 80% knowledge
True
Rate of return matters when it comes to compound interest
False
Shelf positioning forces the buyer to associate a value with the product
True
Spending cash is more painful than using a debit card
False
Term life insurance is more expensive because it funds a savings plan
True
The Roth IRA is an after-tax investment that grows tax free
False
The average job is five years in length
True
The average mutual fund has anywhere from 90-200 companies in it
False
The envelope system includes using credit cards for emergencies
False
The fastest growing group of bankruptcy filers is senior citizens
True
The number one cause of divorce in this country is money issues
True
The power of cash is immediate
False
The purpose of insurance is to increase your investments
False
There are two major credit bureaus: TransUnion and Experian
True
There are two parts to FICA: Medicare and Social Security
True
There is no interest charged on debit card purchases
False
Using a credit card is a good way to find a bargain
True
Walk away power means you leave if you don't get the price you want
False
With all investments, as risk goes up, the return goes down
False
You do not need renter's insurance if you live in a dorm at college
False
You need a credit card in order to rent cars and check into hotels
True
You should always use a realtor when selling a home
False
Your first Baby Step is to pay off all your debt
False
Your salary is the most important motivation for working