Fill In The Blanks
A money principle to keep in mind is to live on __________ you make.
Less than
After World War I, the demand for products increased, and people began getting credit without loan sharks. Because of this, credit...
Started to become more socially acceptable.
What is The First Foundation?
Save a $500 emergency fund.
Savers have a tendency to be...
Strict with their money and not spend any of it.
your liabilities are larger than the value of your assets.
negative net worth
To know your net worth, subtract your liabilities from your __________.
Assets
Using credit has not always been socially accepted practice, but it has become...
Normal in American culture.
You should always make sure you have a...
Budget.
What does living paycheck to paycheck mean?
Living paycheck to paycheck occurs when a person's income is devoted to expenses which, in turn, means that little to no money is put into savings.
A person or entity that charges borrowers interest rates above an established legal rate.
Loan Shark
An important money principle to consider is that you should __________ and __________ your money.
Save and Invest
In 1972, what association made borrowing money to attend college much easier than it had been?
The Student Loan Marketing Association (SLMA)
What are The Five Foundations?
A personal finance action plan.
Using credit has not always been socially accepted practice, but it has become...
Normal in American culture.
A person or organization that uses a product or service.
Consumer
Personal finance is 20% ____________ and 80% ___________.
head knowledge; Behavior
Franklin D. Roosevelt passed the New Deal because of the Great Depression in the 1930s. What was the purpose of this program?
To promote economic recovery and social reform.
What is The Fifth Foundation?
Build wealth and give.
The cost of goods or services; money paid out.
Expense
Money owed to another person or company.
Debt
The amount by which the value of a person's assets exceeds or falls behind the value of their liabilities.
Net Worth
The granting of a loan and the creation of debt; any form of deferred payment.
Credit
The knowledge and skill base necessary for people to be informed consumers and manage their finances effectively.
Financial Literacy
All of the financial decisions an individual or family must make in order to earn, budget, save, spend, and give money over time.
Personal Finance
The additional cost a lender charges for borrowing their money.