Give me some CREDIT
Something that credit card commercials don't show you is:
People making payments for months or years on those credit card purchases
Your greatest tool to building wealth is __________.
Your income
What is the best way to avoid falling into debt?
Only buy things that you can purchase with cash.
The main reasons for saving your hard-earned money are...:
Emergencies, large purchases, and wealth building
As an effective marketing strategy, companies pay a lot to:
Have their products strategically placed in stores
When you finance a new car, you will end up paying more than the sticker price, WHY?
Interest and finance charges
Leasing a car is a method of financing where someone:
Makes monthly payments on but does not own the vehicle
45% of Americans have less than $1,000 saved for a(n) _________________.
Emergency
An example of discretionary spending is ______.
Nonessential goods and services
What is the current student loan debt owed in the US?
1.5 trillion dollars
Making purchases with a credit card means that you're borrowing money with interest, and _____ pay much higher interest rates.
Young people
When the amount of liabilities is larger than the value of your assets:
Negative Net worth
What is financial literacy?
Having the knowledge and skills to manage your personal finances
Why is it important to have a budget and manage your money?
You need to manage your money, or the lack of it will manage you
Name 2 of the 5 foundations
Emergency fund, cash for college, pay cash for car, get out and stay out of debt, be generous
Banks and lenders use credit scores to determine:
The likelihood that someone is able to repay debt
The debt snowball method involves:
Paying off debts from smallest to largest
Which two habits are the most important for building wealth and becoming a millionaire?
Consistently investing money and giving it time to grow
Why do stores like scan and go options, apps, and one-click purchases?
It makes paying easier and faster, so customers are more likely to overspend
It's your right as the consumer to:
Expect a product to live up to the quality promised to you before you purchased it
Banks got into the credit industry before the 1920s because:
Mass production resulted in a surplus of product, credit encourages consumption
The smartest way to buy a car is to:
Pay for it in cash
Why do stores rarely advertise the full price of big purchases like smartphones?
By showing you only the monthly payment, they make the product seem affordable
When someone steals and uses your debit or credit card info, that's called:
Identity theft/Fraud
Companies use marketing to get your __________ offline so you'll be vulnerable to impulse purchases.
Prefrontal cortex