Money Management 101
What is Money Management?
The day to day managing of your personal finances
What is an example of a Cash Flow Statement?
Online banking, or mobile banking app.
What is one type of Budgeting System?
Mental, Physical, Written, Budget Software, Online, and Budget Apps.
What is an asset?
Something of value that you own.
What tv show is credited with being the longest running American primetime animated series ever, first airing in 1989?
The Simpsons
What is one way to increase your net worth?
Increase savings, Reduce spending, Increase Investments, and Reducing debts
Give an example of something you would keep in a Safe Deposit Box.
Marriage certificate, birth certificate, titles of personal property, Investment papers, or rare valuables.
What is one characteristic of a successful budget?
Well planned, realistic, flexible, and clearly communicated.
What is a Variable Expense?
An expense that changes in value month to month.
In the Matrix what color pill does Neo take to learn the truth about the Matrix? Red or Blue?
Red
If you have $150,000 in assets and $30,000 in Liabilities what is your net worth?
$120,000
How long should you keep your personal tax records?
At least 7 years
What is one of the main purposes of budgeting?
Living within your income, spending your money wisely, reaching your financial goals, being prepared for financial emergencies, and developing wise financial habits.
What is the difference between disposable income and discretionary income?
Disposable is income that is allocated for your bills, and disposable is the income you have left over after your bills are paid.
In Back to the Future what speed must the Delorean reach to travel through time?
88 miles an hour.
What is a Cash Flow Statement and why is it important to keep track of each day?
Shows you the in and out flows of cash day to day and you wan to make sure your inflows are higher than your outflows.
Why should you transfer your paper copy financial documents to your computer?
Extra security, it is also easier to send the documents online if they are already digital.
What is one saving technique that we talked about in the notes?
Direct deposit to savings account, automatic payments to savings or retirement accounts, saving coins or cash, and putting a percentage of each paycheck into savings.
What is a current liability?
A debt that has to be paid within the year. Ex. Short term loan, or credit card debt.
In Breaking Bad what is Walter White's street name as a drug manufacturer?
Heisenberg
How is buying something on a credit card considered an opportunity cost?
By buying something on credit you are tying up future income.
What is a Personal Property Inventory and why should you create one when you get your own house?
A list of everything that you own that has value. You will need to create one incase their is a loss and then you can use this item to get your things back through the insurance company.
How many steps are there in the Budgeting Process?
8 steps
What does Insolvency mean?
Your inability to pay your debt when they are due.
What is the name of Thors hammer in the MCU?
Mjolnir