Chapter 1
Chapter 2
Chapter 3
Chapter 4
Chapter 5
100

What is The First Foundation?

Save a $500 Emergency Fund

100

What are the Four Walls? 

Food, utilities, shelter, and transportation

100

Why do some accounts, like savings accounts at your local bank, earn interest? 

Because the bank pays you to use your money 

100

Banks and lenders use credit scores to determine

The likelihood that someone is able to repay debt

100

What is discretionary spending?

Purchasing nonessential goods or services

200

Net Worth = _____ - _______

Assets - Liabilities 

200

Net income is the amount you get paid ___ taxes.

After

200

Which two habits are the most important for building wealth and becoming a millionaire?

Consistently investing money and giving it time to grow

200

What is the difference between appreciating assets and depreciating assets?

Appreciating assets increase in value over time

Depreciating assets decrease in value over time

200

What is the digital marketing strategy that tracks users across the web?

Retargeting

300

Personal Finance is 80% what and 20% what else?

80% Behavior and 20% Head Knowledge

300

Going to the movies is an example of what types of expenses?

Discretionary and variable 

300

Which principle says that a certain amount of money today is worth more than the same amount in the future?

Time Value of Money

300

What is a Merchant Fee?

When Credit card companies charge a store a 2–3% fee for every purchase customers make with credit cards.

300
What is Opportunity Cost?

the financial opportunity that is lost when you choose to do something else with your money

400

In 1972, what association made borrowing money to attend college much easier than it had been?

The Student Loan Marketing Association (SLMA) or Sallie Mae

400

What is a cash-flow statement

a record that summarizes all of the income and outgo (spending) over a certain time period 

It shows you what has already happened with your money

400

The amount of interest charged on a debt but not yet collected is called...?

Accrued Interest 

400

What is the difference between a secured and unsecured loan for the creditor?

Secured loan the borrower puts up collateral. In an unsecured loan the borrow does not put up collateral. 

400

Describe how companies use Transfer/Fantasy advertising technique in marketing

they create an ad that uses the names or pictures of famous people, but not their direct quotations, to convince you that the product will help you imitate the famous person in the ad

500

What was the purpose of the New Deal?

To promote economic recovery and social reform

500

What should you do if you overspend in one category of your budget? 

Adjust your budget by removing money from other spending categories. 

500

How can you outpace inflation with your investments?

Your rate of return needs to be at or higher than 3% per year


500

What is the debt snowball?

List your debts from smallest to largest. Make the minimum payment on all debts. As you pay off a debt, add its minimum payment to the next debt payment

500

List at least 2 of the 4 examples of how a thief would commit card fraud

-Card skimmers at gas stations and ATMs

-intercepting and opening mail from your mailbox

-stealing your card info from online purchases

-charging you too much at restaurants.

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