Vocabulary (ish)
Personal Finance
5 Foundations
Misc.
100

What is an asset? Give an example

something you own that has financial value

100

Personal finance is 20%________ and 80%_________.

head knowledge; behavior

100

Foundation 2 says to stay out of_________.

debt

100

How do you calculate net worth?

assets-liabilities

200

What is the difference between credit and debt?

Credit-ability to borrow

Debt- money owed to another

200

What are the two keys to success to "win" with money?

self-control, discipline

200

You should pay cash for which 2 things?

car, college

200

Why is it important to know your money personality? 

know how you handle money, helps to create a plan, know risks

300

What is a money personality and why is it important to know yours?

impacts how you handle money


spender, saver, avoider, worrier

300

Personal finance is all the decisions an individual or family must make in order to _______, _________, _________, and __________ over time. 

earn, budget, save, and spend money

300

How much money should you have in an emergency fund (first foundation)

$500

300

Financial goals should be... (5 things)

Specific, measurable, achievable, realistic, timely

400

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)

400

What is financial literacy?

The knowledge and skills necessary for people to be informed consumers and manage their finances effectively.

400

What is the 5th Foundation?

build wealth and give

400

What are the steps to building a financial plan?

- determine your net worth

-setting solid financial goals

-develop a plan

500

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....

500

What are the 3 basic principles to managing your money? 

- have a financial plan

-live on less than your make

-stay away from debt

500

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


500

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