Vocabulary (ish)
What is an asset? Give an example
something you own that has financial value
Personal finance is 20%________ and 80%_________.
head knowledge; behavior
Foundation 2 says to stay out of_________.
debt
How do you calculate net worth?
assets-liabilities
What is the difference between credit and debt?
Credit-ability to borrow
Debt- money owed to another
What are the two keys to success to "win" with money?
self-control, discipline
You should pay cash for which 2 things?
car, college
Why is it important to know your money personality?
know how you handle money, helps to create a plan, know risks
What is a money personality and why is it important to know yours?
impacts how you handle money
spender, saver, avoider, worrier
Personal finance is all the decisions an individual or family must make in order to _______, _________, _________, and __________ over time.
earn, budget, save, and spend money
How much money should you have in an emergency fund (first foundation)
$500
Financial goals should be... (5 things)
Specific, measurable, achievable, realistic, timely
What does it mean to live paycheck to paycheck, what percent of Americans do this? Why are so many Americans in debt?
more month at the end of your money, 70-80%, materialistic (credit is convenient and normal)
What is financial literacy?
The knowledge and skills necessary for people to be informed consumers and manage their finances effectively.
What is the 5th Foundation?
build wealth and give
What are the steps to building a financial plan?
- determine your net worth
-setting solid financial goals
-develop a plan
What does the Bible say about money? Give me a verse and explain how that verse relates to what we have learned so far in this class.
open ended....
What are the 3 basic principles to managing your money?
- have a financial plan
-live on less than your make
-stay away from debt
Name all 5 Foundations
1. $500 emergency fund
2. Get/stay out of debt
3. Pay cash for your car
4. Pay cash for college
5. Build wealth and give
Explain the history of credit in America
no credit before 1917
credit laws relaxed in 1920
New Deal in 1930 expanded consumer credit
1945 WWII ended-well paying jobs led to believing in the American Dream
1970-today credit is convenient and normal and people are going more and more into debt