Personal Finance T/F

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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


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