Revised Chapter 1 Personal Finance Review

To gain an understanding of your personal finances you should know Where are you stand financially how much income you have what goals do you want to certain how you reach those goals Your investment portfolio in your financial advisors contact and information Your financial goals

A

What is the best way to avoid running out of money too quickly You can make it a habit to plan and set goals for your money You can avoid making any purchases for the next 30 days You can invest in college

A

When you set financial goals they should be A specific measurable time sensitive yours and written B timely bank based specific and yours

A

What are the five foundations?

And personal financial action plan.

How are assets and liabilities connected to net worth?

Assets are things with value liabilities are debts or money owed. You subtract liabilities from assets to get your net worth.

You should always make sure you have a....

Budget

What is the fifth foundation?

Building wealth and give.

To know your net worth subtract your liabilities from your A other liabilities B net income C previous net worth D assets

D assets

As a single adult you should

Keep managing your money as a priority

Imani principal to keep in mind as to live on blank you make

Less than

Using credit has not always been a socially excepted practice but it has become...

Normal in American culture

If your assets total more than your liability she will have

Positive net worth

What is the first foundation?

Save a $500 emergency fund

In 1972 when association made borrowing money to attend college much easier than it had been?

The student loan marketing association

True or false it is possible to pay for college with cash?

True

What does living paycheck to paycheck mean Living paycheck to paycheck occurs when a persons income is devoted to expenses which means that little to no money is put in savings When a person chooses to not deposit their paycheck they are living paycheck to paycheck. Living paycheck to paycheck is an expression used to describe a situation when someone eagerly await the next paycheck to plan for the months expenses Living paycheck to paycheck is an expression used to explain the situation in which a person cannot plan past the next paycheck due to financial and budgeting difficulties caused by outside circumstances

A

Contrast the differences between short medium and long-term financial goals

A short term goal takes up to two years to reach. A medium term goal takes up to five years to reach. A long-term goal takes longer than five years to reach.

What is financial literacy? A The skills to read financial documents for personal finance class his goals and statements B The knowledge and skill-based necessary for people to be informed consumers and manage their finances effectively. C The constant provided in bank statements for consumers D The curriculum provided to college students about finances for their degrees

B

Why is personal finance dependent upon your behavior?

Because personal finances 20% head knowledge and 80% behavior. The way you behave with your money will determine your net worth and the state of your finances.

Making the right choices with your money managing your money involves knowing how A consumer decisions will affect your accounts B planning saving spending and investing will define your financial portfolio C to make bank deposits using registers with the appropriate transactions listed D earning budgeting saving spending and giving affect your money

D

Savers have a tendency to be A strict with purchases for only themselves B strict with what they spend their money on other than groceries C strict with their purchases but spend money without a plan D Strict with their money and not spend any of it

D

Banks got in to the credit business before 1920 because charging exceptionally high interest rates was legal true or false

False

True or false being a spender has many more positives than being a saver?

False

You are either only a natural saver or a natural spend her you cannot have a balance of both true or false

False

Without any that you can be outrageously _______

Generous

Personal finance is 20% blank and 80% blank

Head knowledge; behavior

Your money personality impacts....

How you handle money.

Personal finance is all the financial decisions a blank must make an order to earn budget save spend and give money overtime

Individual or family

Identify the five foundations and describe each of them then evaluate how they will help you manage your money right now.

Make a $500 emergency fund this will allow you to have money in the event of an emergency. Get and stay out of debt this will allow you to not be bound in debt. You will not have interest or credit card payments. It will also allow you to avoid interest now and in the future. Pay cash for your car this will allow you to avoid interest and or payments over a long period of time. Pay cash for college This will allow you to avoid student that you will not have to make payments. Build wealth and give. Having a large amount of money in savings and having everything paid for will allow you to help others that are in need.

Any important money principal to consider is that you should blank and blank your money.

Save and Invest

A _______ financial goal takes up to two years to reach

Short term

After World War I the demand for products increased and people began getting credit without loan sharks because of this credit...

Started to become more socially acceptable

Explain how your money personality affects your spending behavior use examples from the textbook and personal experiences as support for your explanation.

The way you view your money and what you decide to do with it will determine how do you spend it. According to the textbook you will either manage your money or the lack of it will forever control you. As we know personal finance is 20% knowledge and 80% behavior. My personality of money is a saver that means I am going to save my money. That's why I have a pretty good savings. The book teaches us that the way we manage our money will determine our outcome with our finances. That tells us that your personality with money affects your behavior. And behavior determines your finances.

Franklin D Roosevelt passed the new deal because of the great depression in the 1930s what was the purpose of this program?

To promote economic recovery and social reform.

Why should you be aware of whether you are a saver or a spender

To understand how you manage money and to be able to talk about it with others. If you're a spender, being with a saver means that you can have someone watching your finances so that you don't get out of control.

True or false voting that can lead to financial freedom and hope?

True