Personal Finance

Which of the following is an example of financial irresponsibility? organizing financial documents paying car payments on time spending your entire paycheck finding a new job before quitting your current job

spending your entire paycheck

A goal is a result that is desired. True False

True

Decisions and goals are connected. True False

True

Financial literacy is the knowledge about money and what you do with money. True False

True

Reliable information is information you can trust with certainty. True False

True

Sam will finish high school this year. He does not think he needs any further education. This is a misconception.

True

Sam will finish high school this year. He does not think he needs any further education. This is a misconception. True False

True

To become financially responsible, you need to accept that you are accountable for your financial future. True False

True

When you are accountable, reliable and dependable you are acting responsibly. True False

True

You should review your goals about once a month. True False

True

riteria are standards for evaluating something. True False

True

Erin is in high school. She decides that she will set aside money to put in her savings account each week from the money she makes babysitting. This is a bad habit.

False

Financial literacy is the knowledge about _____.

Money

Put the following steps for calculating net worth in the correct order. Step #1: Step #2: Step #3: Step #4: Step #5:

1. List your assests 2. Total your assest 3. List liabilities 4. Toal liablitlies 5. subrates liablities from assets

Kevin wants to purchase a new snowboard for winter. It costs $300. It is now September. He gets paid every two weeks. After he pays his bills he has about $100 left over. Write a goal for him.

After paying his bills he needs to start saving $75 of the $100 to get to his total of $300. Anthoer thing might be add another day into his schedule to have money by than.

Select all of the guidelines you should follow when writing your goals. Include a plan. Make your goals measurable. Make your goals long. Break down long-term goals into short-term goals. Memorize your goals. Use detail.

All

List some reasons for becoming financially literate.

Becoming financially literate can save you money and time. This can also help you make right decisions in like making smart purchases.

Select each of the PACED steps below. Define the problem. Conduct an Internet search for information. List the alternatives. Select the criteria. Evaluate the alternatives. Make a decision. Evaluate the decision.

Define the problem. List the alternatives. Select the criteria. Evaluate the alternatives. Make a decision.

Liabilities are items you own that have value. True False

False

Your financial decisions will only affect you and nobody else. True False

False

Your financial decisions will only affect yourself and nobody else. True False

False

PACED is a process for finding reliable information. True False

Falsw

Michael must pay his way through college. He is a sophomore in high school and currently babysits regularly on the weekends. He works 15 hours and makes $8.00 an hour. He will be eligible to work at his uncle's restaurant in three months, and he can work twenty hours a week at $8.50 an hour. Use the PACED decision-process to decide what Michael's best choice is. Show each step.

He is either going to work 15 hours and make $8 or work 20 hours and make $8.50. He needs to pay for college. He either can babysit or work for his grandpa How much will he be making.

Thomas was thinking about the car he wants to buy in a few years. He does'nt know what he should do now so that he can buy the car. What should Thomas do?

He should become more knowledgeable about smart ways to save and about car loans.

Nick has a goal to pay his credit card balance in full by June 30. When he first wrote the goal in December, his balance was $2,500. It is now April, and he can pay all except $200. Evaluate his progress and describe the results in one to two sentences.

He's making great progress in the 5 months and now has two months to make $200.

Read the following two descriptions. Decide who has better financial habits and attitudes. Lindsay doesn't feel that she will ever get her credit card paid off. After seeing her new bill, she tosses it aside so she doesn't have to think about it. Hillary receives a few bills in the mail. She takes out a piece of paper and starts figuring out a plan to pay these bills.

Hillary receives a few bills in the mail. She takes out a piece of paper and starts figuring out a plan to pay these bills.

Read and reflect on the following quote. "No matter who you are, making informed decisions about what to do with your money will help build a more stable financial future for you and your family." - Alan Greenspan In the text box below, list some financial information you would like to learn about and why it is important for building your financial future.

How saving money, and opening a checking account is important. It is important to build your financial future because it gives you a good plan on what is going to happen in your future.

Do you already demonstrate some ways of being financially responsible? In the text box below, write a brief statement about the ways you already show financial responsibility. Also mention a few areas you would like to start working on.

I am financially responcible by paying my own car payments on time. Some areas I would like to work on are setting a budget and holding to it and knowing my needs and wants.

If you haven't already, take a look at your score on the self-assessment you took earlier in this lesson. Study the feedback for each item. In the text box below, enter a brief statement about any misconceptions you've had about what it means to be financially literate. Also, enter a brief statement about financial habits or attitudes that you discovered about yourself-both good and bad.

I had a misconceptions of when they said that he wuld like to invest of some of his money.

Carol has decided that she wants to travel when she graduates high school. Which of the following would be a helpful goal for her? I will buy a plane ticket to travel to Italy. I will travel after I graduate. I will work one extra shift per week and set aside $150 per paycheck to purchase a plane ticket to Italy. I will save $100 per paycheck.

I will work one extra shift per week and set aside $150 per paycheck to purchase a plane ticket to Italy.

Decisions often have negative effects on reaching goals. (Remember the example of Nathan? He purchased a video game he wanted, but had to delay getting his snowboard.) You can probably think of many examples of how decisions can affect your goals. Think about one of your goals. In the text box below, write about how a decision could affect reaching this goal.

One of my goals is to buy a car which is $300 a month and a decision such as my son needing something or I just feeling him needing something could effect me reach my goal.

Lisa and her husband would like to buy a house soon. She continuously pays bills late. How do her actions affect her and others?

Paying those bills late shows that she is very irresponsibiliy. It hurts her actions by putting her credit low. Her actions affect others by showing those paying bills late is not a good idea.

You do an Internet search and the results list includes the Web site www.FDIC.gov. This information is _____. reliable unreliable

Reliable

You receive a college investing kit in the mail from a reputable investment company. This information is _____. reliable unreliable

Reliable

The third step in the PACED decision-making process is to _____. list alternatives select the criteria select the choices evaluate the choices using the criteria

Select criteria

Alicia has been keeping money in her room that she has earned from babysitting. What should Alicia do with this money?

She should become more knowledgeable about her options for savings accounts.

An example of financial irresponsibility is _____. organizing financial documents paying car payments on time spending your entire paycheck finding a new job before quitting your current job

Spending your entire paycheck

Sam's laptop is four years old and needs a new hard drive. He got a quote that it will cost $450 to fix it. A new, similar laptop with a faster processor costs $750. Use the PACED decision process to decide what Sam's best choice is. Show each step.

The problem is he needs to decide weather which way is the better way to go. The alternative is he can either replace his computer for $450 or get a new one for $750 Than he needs to decide which one he is going to choose.

Carl started earning a paycheck and wants to invest some of what he earned. In this situation, why is it important for Carl to be financially literate?

To know the ups and downs of the things he would like to ivest in.

Select the items from the following list that are included in financial literacy.

applying for a credit card using a credit card to make a purchase paying taxes opening a checking account

Select the items from the following list that are included in financial literacy. applying for a credit card using a credit card to make a purchase paying taxes opening a checking account changing a car tire deciding to rent an apartment

applying for a credit card using a credit card to make a purchase paying taxes opening a checking account

Select the items from this list that are examples of good financial habits.

creating a budget no matter what your age asking advice from employees at a bank or financial advisers keeping good records saving as soon as you have a full-time job

A(n) ___ standards for evaluating something.

criteria

Which of the following is an example of financial responsibility? borrowing from your brother to make a car payment having medical insurance spending money before you have earned it making impulse buys at the grocery store

having medical insurance

A(n) ____ is a misunderstanding; a mistaken thought or idea.

misconception

Financial literacy is knowledge about _____. banks money reading financial books investing

money

You read a newspaper article in the business section of a newspaper. The author is a licensed financial advisor with a degree in finance. The article is about setting aside money for your kid's college tuition. This information is _____. reliable and relevant unreliable and relevant reliable but irrelevant unreliable and irrelevant

reliable but irrelevant

Financial literacy includes information about income, banking, loans, and credit cards. True False

true

You pick up a brochure at the grocery store. You cannot find any information about the organization that created it. This information is probably _____. reliable unreliable

unrealiable

You pick up a brochure at the grocery store. You cannot find any information about the people who created it. This information is _____. reliable unreliable

unreliable

Grace would like to open a checking account. She needs to decide which bank is better for her. Grace should _____. select the bank that is closer to her house write her short term goals call the banks use the PACED decision-making process to help her decide

use the PACED decision-making process to help her decide