True/False
Banks got into the credit business before 1920 because charging exceptionally high interest rates was legal.
False- it was ILLEGAL
financial debts or obligations
Liabilities
What does The First Foundation require?
Save a $500 emergency fund
If your assets total more than your liabilities, you will have a(n) ___________ net worth.
Positive
After WWI, the demand for products increased, and people began getting credit without loan sharks. Because of this, credit...
started to become more acceptable
Being a spender has many more positives than being a saver.
False
anything that is owned by an individual, including money in the bank or investments
Assests
What does The Third Foundation require?
Pay cash for your car
A __________ financial goal takes up to two years to reach.
Short-Term
Franklin D Roosevelt passed the New Deal because of the Great Depression in the 1930's. What was the purpose of this program?
to promote economic recovery and social reform
Avoiding debt can give you financial peace and a sense of hope for the future.
True
the amount by which the value of a person’s assets exceeds or falls behind the value of their liabilities
Net Worth
What does the Fifth Foundation Require?
Build wealth and give.
To know your net worth, subtract your liabilities from your___________.
Assests
What does living paycheck to paycheck mean?
a person's income is devoted to expenses which, in turn, means that little to no money is put in savings.
It is possible to pay for college with cash
True
all the financial decisions an individual or family must make in order to earn, budget, save, spend, and give money over time
Personal Finance
What does The Second Foundation Require?
Get our and stay out of debt
A money principle to keep in mind is to live on ______ than you make.
Less
In 1972, what association made borrowing money to attend college much easier than it had been?
The Student Loan Marketing Association (SLMA)
You are either a natural saver or a natural spender. You cannot have a balance of both.
False
The knowledge and skill set to manage finances effectively
Financial Literacy
What does The Fourth Foundation require?
Pay cash for college
Personal finance is 20% __________ and 80% ___________.
Head Knowledge; Behavior
When you set financial goals, they should be... (I am looking for 5 words)
1. specific
2. measurable
3. time-sensitive
4. yours
5. written