The 5 Foundations
What is the 1st foundation?
save $500 emergency fund
______ ______ is all the financial decisions an individual or family must make in order to earn, budget, save, spend, and give
personal finance
True or False...
Banks did not get into the credit business before the 1920's because charging exceptionally high rates was illegal.
true
A money principle to keep in mind is to live on _____ than you make.
less
A _____-_____ financial goal takes up to 2 years to reach.
short-term
What is the 2nd foundation
Get out of debt
Almost 82% of Americans use all of the money they get from one paycheck just to make it to the next, this is called living......
paycheck to paycheck
Becasue the demand for products increased after _____ _____ ______, credit started becoming socially acceptable.
World War 1
When you subtract your liabilities from your assets, you get your ____ ______.
Net worth
When it comes to money management, you should ALWAYS make sure you have a _______.
budget
What is the 3rd foundation?
pay cash for your car
Personal finance is ____% head knowledge and ____% behavior
20%, and 80%
Because debt had become normal in American culture, the averange debt per person is over _______
34,000
negative
Your money __________ impacts how you handle money.
personality
What is the 4th foundation?
pay cash for college
______ ______ is the knowledge and skill base necessary for people to be informed consumers and manage their finances effectively
financial literacy
Frank D. Roosevelt passed the _____ _____ to promote _______ recovery and social reform
New Deal, economic
An important money principle to consider is that you should ______ and _______ your money.
_______ your money as a single adult should always be a priority.
managing
What is the 5th foundation?
Build wealth & give
Name the 5 areas of personal finance?
earning, budgeting, saving, spending, and giving
In 1972, what association made borrowing money to attend college much easier than it had been?
SLMA- Student Loan Marketing Association
To gain a better understanding of your finances, you must know where you stand financially, this includes ___________________, __________________, ____________________. (blanks are short statements)
how much income you have, what goals you want to set, and how you will reach those goals
When you set your fiancial goals, they should be _______, ________, _____-______, _______, and ________.
specific, measurable, time-sensative, yours, written