Saving
Why should you have an emergency fund?
For emergencies
What is a Zero-Based Budget
A budget that puts every dollar on paper before the month
First Three Financial Myths are:
Everyone has a car loan, debt is a tool, and debt is normal.
What is the Student Loan Myth?
The student loan myth is that student loans are good loans.
List the Four Common Marketing Tactics:
Person Selling
Financing
Repetition
Product Positioning
What is compound interest?
Interest on the interest.
What is Reconcile?
Matching your bank statement with your written statement
Three Ways You Lose Money When Buying a New Car:
Payments Interest Depreciation
What are Grants?
Federal or state financial aid
List the Five Steps to Develop Power Over Purchase:
Wait Overnight
Consider Buying Motives
Never buy anything you don’t understand
Consider Opportunity Cost
Seek Wise Counsel
Three basic reasons to save money are:
Emergency Fund, Purchases, Building
Wealth
What should you do to prevent overdrafting.
Make a budget
How should you pay for a car
Cash Flow
What is FAFSA?
Form that is completed annually to determine your eligibility for financial aid.
Should you impulse buy?
No
What is better - Saving or Investing?
Investing
List the Eight Key Terms From This
Chapter:
Budget, Cash Flow Statement, Carbon
Check, Envelope System, Impulse Purchase, Overdraft,
Reconcile, Zero-Based Budget.
Four Warning Signs that You May Have Had Your Identity Stolen
Checks disappear from your checkbook, Credit reports show accounts you didn't open, Bank and billing statements don't arrive on time, and A lot of agencies call you.
Three Reasons Why You Should Avoid Student Loans:
When you go bankrupt they don’t go away.
The career you’re going into might not pay off those loans.
You’ll be paying lots of interest
Explain Why Financing a Purchase is a Bad Idea:
Because you end up paying more on it that you would if you paid in cash
What are the Five Foundations?
Save an emergency fund
Get out of debt
Pay Cash for Your Car
Pay Cash for College
Build Wealth and Give
What is the difference between a Cash Flow Statement and a Zero-Based
Budget?
Cash Flow Statement is Making a budget with the money that comes
in now. Zero Based Budget is making a budget that puts EVERY dollar on
paper before the month.
Five Steps to Get Out of Debt:
Quit borrowing more money, Save money, Sell something, Get a part time job, Use debt snowball method.
How can you cash flow your college education?
Get as many scholarships and grants as possible. Then work all summer and work part time while in school. This helps cash flow college.
Explain Opportunity Cost
Opportunity that is given up because you choose to do something else with your money.