Ch. 1: Intro to PF
A money principle to keep in mind is to live on ________ you make.
A. Exactly 20% below what
B. More than
C. The same as
D. Less than
D. Less than
How often should you create a budget?
A. Daily
B. Weekly
C. Monthly
D. Biannually
C. Monthly
You'll have less freedom with your money if you . . .
A. Invest in the stock market
B. Are paying for things in your past
C. Put money in a bank account
D. Make less than $35,000
B. Are paying for things in your past
Your greatest tool to building wealth is ________.
A. Tax cuts
B. Single stocks
C. Your income
D. Your credit score
C. Your income
3. As an effective marketing strategy, companies pay a lot to...?
A. Have their products strategically placed in the store.
B. Get you to dislike their branding.
C. Confuse you about their product.
D. Choose a brand similar to theirs.
A. Have their products strategically placed in the store.
Savers have a tendency to be . . .
A. Strict with their purchases but spend money without a plan
B. Strict with only purchases for themselves
C. Strict with what they spend their money on, other than groceries
D. Strict with their money and not spend any of it
D. Strict with their money and not spend any of it
How many months does it usually take for your budget to start working as a budget should?
A. Three
B. Five
C. Four
D. One
A. Three
Once you have a $500 emergency fund, you should . . .
A. Start putting it toward debt
B. Invest it in the stock market to grow your money
C. Save it until you have an emergency
D. Use the money to pay for health insurance
C. Save it until you have an emergency
______ require the borrower to put up collateral for the loan.
A. Unsecured loans
B. Interest rates
C. Revolving credit
D. Secured loans
D. Secured loans
When someone steals and uses your debit or credit card info, that's called ________.
A. Networking
B. Borrowing
C. Fraud
D. Authorized spending
C. Fraud
An important money principle to consider is that you should _______ and ______ your money.
A. Save; invest
B. Invest; lay out
C. Spend; invest
D. Invest; endow
A. Save; invest
How many categories should you have in your budget?
A. 15 or more
B. No limit; use as many as you need to keep your budget accurate!
C. No more than 10
D. At least 3
B. No limit; use as many as you need to keep your budget accurate!
If you really want to save money, you've got to . . .
A. Fly economy class
B. Live on less than you make
C. Invest in a Roth IRA
D. Have a financial advisor
B. Live on less than you make
Credit card companies make the most profit from ______.
A. Incentive programs with banks
B. Partnering with companies to offer rewards to customers
C. Government tax breaks
D. Charging interest to customers who only pay part of their monthly debt
D. Charging interest to customers who only pay part of their monthly debt
What is the digital marketing strategy that tracks users across the web?
A. Retargeting
B. Native ads
C. YouTube videos
D. Content marketing
A. Retargeting
Your money personality impacts . . .
A. Your understanding of bank transactions
B. How you handle money
C. Your financial literacy level
D. What you plan for as an adult
B. How you handle money
Research shows that nearly half of Americans (46%) feel stress and anxiety about the amount _______ of they have.
A. Money
B. Debit cards
C. Categories in their budget
D. Personal debt
D. Personal debt
_______ is a millionaire's best friend.
A. Accrued interest
B. Compound growth
C. High returns
D. Profit sharing
B. Compound growth
Credit cards that offer flashy rewards like airline miles often . . .
A. Charge a high annual fee
B. Don't include protection against fraud
C. Can't be used for personal expenses
D. Have no interest fees
A. Charge a high annual fee
Part of being a smart consumer is being able to . . .
A. Say no to an unnecessary purchase
B. Use a credit card for the points without going into debt
C. Set up digital wallets and mobile payment
D. Discern when to open a retail store credit card and when not to
A. Say no to an unnecessary purchase
What is this term definition? "The knowledge and skill base necessary for people to be informed consumers and manage their finances effectively?"
Financial Literacy
Although the majority of Americans think budgeting is important, about _______ of Americans actually use a budget.
A. 75%
B. 50%
C. 23%
D. 35%
D. 35%
The interest rate on a savings account determines . . .
A. How much money you need to have to open the account
B. How much you will pay the bank to manage the account
C. The amount of time your money will be in the account
D. How quickly your money will grow over time
D. How quickly your money will grow over time
What is The Second Foundation?
A. Get out and stay out of debt
B. Save a $500 emergency fund.
C. Pay cash for your car.
D. Build wealth and give.
A. Get out and stay out of debt
Before you insert your debit card at the gas pump, you should always . . .
A. Check out the card reader to see if it looks different, loose, or worn
B. Make sure you have enough money in your account
C. Ask the store clerk if there has been a thief here lately
D. Pay cash—never use a card at a gas pump
A. Check out the card reader to see if it looks different, loose, or worn