Cash Flow
Money you receive is called what?
Cash inflow
Regular monthly costs like rent are called what?
Fixed expenses
What is the first step in financial decision-making?
Establish goals
A goal that can be achieved within 1 year is called what?
Short-term goal
You make $100 a week and spend $60. What’s your weekly cash inflow?
$100
Money you spend is called what?
Cash ouflow
Costs that change each month, like groceries, are called what?
Variable expenses
What step involves reviewing income, expenses, assets, and liabilities?
Evaluate current position
Saving for a car in 3 years is an example of what type of goal?
Intermediate-term goal
You make $100 a week and spend $60. What’s your weekly cash outflow?
$60
Give one example of a cash inflow.
Job, allowance, gifts, investments
The things you own with value are called what?
Assets
What is the final step in the process?
Revise as necessary
A long-term goal usually takes how many years?
5 or more years
If you own $2,500 in assets and owe $500 in liabilities, what’s your net worth?
$2,000
What happens if your outflows are greater than your inflows
You got into debt
Money you owe is called what?
Liabilities
Which step asks you to look at costs, benefits, and opportunity cost?
Identify & evaluate options
What makes a goal SMART?
Specific, Measurable, Attainable, Realistic, Time-based
You spend $200 on clothes instead of saving for a phone. What’s the opportunity cost?
The phone savings
True or False: Having more inflows than outflows allows you to save and invest.
True
How do you calculate net worth?
Assets – Liabilities
Why is evaluating progress regularly important?
It shows if you’re on track or need adjustments
Give an example of a SMART financial goal.
“Save $50/month for 6 months to buy a $300 laptop.”
A student wants to save $600 for a new phone in 6 months. How much should they save per month?
$100