Money Management
What is Personal Finance?
All financial decisions and activities of an individual or family, including earning, budgeting, saving, spending, and giving money over time.
What is a zero-based budget?
A budget where every dollar of income is assigned to an expense, savings, or debt, resulting in income minus expenses equaling zero.
What is the main purpose of a credit score?
To indicate your creditworthiness to lenders.
What is an example of impulse buying?
Buying something without planning because it was on sale.
What is the Proximity Principle?
The idea that to do what you want, you need to be around people who are doing it and in places where it’s happening.
What is the 1st Foundation?
Save $500 for an emergency fund.
What should you do if you overspend in one category of your budget?
Adjust your budget by reducing spending in another category
What is the debt snowball method?
A debt repayment strategy where you pay off debts from smallest to largest balance. As a debt is paid off, its minimum payment is included in the next debt payment.
Why is paying with cash often a better option than virtual payments?
Paying with cash makes it more tangible and easier to control spending.
What is job shadowing, and how can it impact your career choice?
Observing a professional in their work environment to gain insight into a career field, helping you decide if it’s a good fit.
What does it mean to live paycheck to paycheck?
Relying on each paycheck to cover expenses, with little or no savings left over.
What is the goal of an emergency fund?
To cover unexpected expenses without going into debt.
What should you do if you suspect fraudulent activity on your credit card?
Contact your credit card company to report the fraud immediately. Freeze your card/account
What does “power over purchase” mean?
Exercising control over buying decisions by slowing down, thinking carefully, and avoiding impulse purchases.
What is the point where your greatest talents, passions, and values intersect called, and why is it important in career planning?
It’s called your "sweet spot," and it’s important because it helps you find a career that aligns with what you enjoy and are good at.
Why is it important to track your expenses throughout the month?
Tracking expenses helps manage spending, prevents overspending, and aids in staying on budget.
Why is it important to start saving early?
Starting early allows compound interest to grow your savings over time.
Why is it important to monitor your credit report regularly?
To check for errors and signs of identity theft.
Why do stores rarely advertise the full price of big purchases like smartphones?
To make the purchase seem more affordable by focusing on monthly payments rather than the total cost.
What are hard skills, and why are they valuable to employers?
Hard skills are specific, teachable abilities like coding or writing. They are valuable because they are directly applicable to job tasks.
Why is personal finance more about behavior than math?
Financial success depends more on spending habits, discipline, and decision-making than on mathematical calculations.
What are the Four Walls?
Food, utilities, shelter, and transportation—essential expenses that should be prioritized in a budget.
What is predatory lending?
Lending practices that deceive or exploit borrowers, often with high fees and interest rates.
What is the primary purpose of marketing?
To communicate the value of a product or service to consumers and encourage them to buy.
What is the benefit of developing a career portfolio, and what key elements should it include to make you stand out to potential employers?
A career portfolio showcases your skills and achievements, helping you stand out.
Key elements include a resume, work samples, letters of recommendation, and a personal statement.