Category A
The decisions you make about YOUR money
Personal Finance
You should always make sure you have a…
Credit Line
Budget
Direct Deposit
Credit Card
Budget
A money principle to live by is to live on you make
less than
What you own (assets) - What you owe (liabilities) =
net worth
Specific, measurable, achievable, relevant, and time-sensitive
An important money principle to consider is that you should _____ and _____ your money.
Spend; borrow
Invest; give
Avoid; forget about
Save; invest
save; invest
The Fourth Foundation
Pay cash for college
A _____ financial goal takes up to two years to reach.
Short-Term
Long-Term
Five-Level
Medium-Term
Short-Term
The Second Foundation is:
Get out of debt and stay out of debt
True or False: It is not possible to have a negative net worth
False
What is The First Foundation?
Save a $500 Emergency Fund
How are assets and liabilities connected to net worth?
Assets-liabilities=net worth
After World War I, the demand for products increased, and people began getting credit without loan sharks. Because of this, credit…
Became more socially acceptable
Personal finance is 20% _______ and 80% _______.
Head knowledge; behavior
The Third Foundation
Pay cash for your car
True or False:
Banks got into the credit business before 1920 because charging exceptionally high interest rates was legal.
False
Savers have a tendency to be . . .
People who spend a lot
Strict with their purchases but don't have a budget
Strict with their money and not spend any of it.
What is the best way to avoid running out of money too quickly?
Invest in college
Put it in a safe place, like a bank
Make it a habit to plan and set goals for your money
Avoid making purchases for 30 days
Make it a habit to plan and set goals for your money
The Fifth foundation
Build wealth and be outrageously generous
It is possible to pay cash for college
True
The knowledge and skill base necessary for people to be informed consumers and manage their finances effectively
What is financial literacy?
Your money personality impacts . . .
What you plan for as an adult
Your financial literacy level
How you handle money
Your understanding of bank transactions
How you handle money
In 1972, what association made borrowing money to attend college much easier than it had been?
Student Loan Marketing Association (SMLA)
What does living paycheck to paycheck mean?
Franklin D. Roosevelt passed the New Deal because of the Great Depression in the 1930s. What was the purpose of this program?
To alleviate financial concerns with the U.N.
To divide the national budget in half
To create a borrowing system in the US
To promote economic and social reform
To promote economic and social reform