Key Terms
Anything you owe; a debt
What is a liability?
This is a fee that you pay on top of the money you already owe.
What is interest?
This is any money set aside for five years or less, including your emergency fund.
What is savings?
This is extra cash to use when things come up that you weren't expecting.
What is an emergency fund?
This is a plan for spending.
What is a budget?
An obligation to repay borrowed money
What is a debt?
The purpose of keeping this item is to know if you are managing money well. It will help you determine what you need to write into your budget so that needs, some wants, and savings goals are met.
What is a spending diary?
This is money set aside for more than five years.
What is investing?
These are the ways you earn money.
What is work?
This is the condition of having unlimited wants but limited resources.
What is scarcity?
The cost of goods or services
What are expenses?
It is possible to save money when you have a small income. (True or False)
What is true?
These are expenses that vary or change in dollar amount every month. Examples include utility bills, gasoline, groceries, and clothing.
What are variable expenses?
This is planning to use money later for purchases and wealth building.
What is save (or saving)?
This is about 80% behavior and 20% head knowledge.
What is personal finance?
This allows invested money to grow over time
What is compound interest?
This refers to all the money decisions a person or family must make in order to earn, budget, save, and spend money over time. These choices involve planning for emergencies and for the future.
What is personal finance?
These are expenses that occur at various times throughout the year and tend to be in large lump sums. Examples include tuition payments, athletic or club dues, and car repairs.
What are intermittent expenses?
This is offering your money, time, talent, and abilities to serve others.
What is give (or giving)?
This is the first foundation.
What is save a $500 emergency fund?
This is a measurement of the total dollar value of a person’s or business’ assets minus liabilities.
What is net worth?
A Checkbook register, a smartphone app, or online tools offered by your bank-according to the book, what are these items useful for?
What are some tools you can use to balance your checking account?
These are nonessential expenses for things you don’t necessarily need. Examples include eating out, gifts, and candy
What are discretionary expenses?
This is the fifth foundation.
What is build wealth and give?
These are expenses that remain the same from month to month. Examples include rent, insurance premiums, and a cell phone bill.
What are fixed expenses?