Chapter 1
The term for "the knowledge and skill base necessary for people to be informed consumers and manage their finances effectively".
What is financial literacy?
A written plan for how you are going to use your money (giving, saving and spending).
What is a budget?
What can go wrong will go wrong.
What is Murphy's Law?
Money owed to another person or company.
What is debt.
Buying anything without planning to do so in advance.
What is impulse buying.
An expression used to describe a person or household whose monthly income is devoted to expenses and has little to no savings.
What is living paycheck to paycheck?
The 4 components of a budget.
What is income, giving, saving and spending?
The three reasons to save money.
What are for emergencies, for large purchases and for wealth building.
A number used to represent a consumer‘s creditworthiness.
What is credit score?
Self awareness, Motive, Affordability, Research, and Timing.
How to be a SMART consumer.
The 3rd Foundation.
What is buy a car with cash?
An expense you can expect at the same time at the same amount.
What is a fixed expense?
The 5th foundation.
What is build Wealth and Give?
What is the snowball debt method?
Companies pay to have their products placed strategically to get you to add more to your cart.
What is Product Placement?
The 4th Foundation.
What is pay for college with cash?
When an individual gets paid at different amounts or at different times, or both.
What is irregular income?
Taking the price of the item and dividing it by how long you plan to save.
How to save up for a large purchase?
Something owned (that has value) offered as security on a debt; if the debt is not repaid as agreed, the item is forfeited to the lender.
What is collateral?
Devices attached to card readers at gas stations and ATM machines. When you insert your card to make a transaction, your card information (along with your PIN number, if you used it) goes straight to the thief.
What is a card skimmer?
This describes people who are more strict with how they use their money versus people who can be more spontaneous.
What are savers vs spenders?
The four walls.
What are food, utilities, shelter and transportation.
3 ways to determine if a situation is an emergency.
What is unexpected, necessary and urgent?
A revolving credit account that one can access by using a card.
What is a credit card?
A form of online advertising that keeps a company’s product in front of its target audience by following them all over the web and across multiple channels.
What is retargeting?