Personal Finance
Personal financial success is primarily the result of:
Managing your money behavior
Which of the following steps is the First Foundation?
Save a $500 emergency fund
Rent is a:
Fixed expense
What is paycheck garnishment?
A court-ordered attachment that allows a lender to take monies owed directly from a borrowerʹs paycheck
(18 ÷3 +28 ÷4 +2 x 4)÷3
What is 7?
When it comes to managing money, success is about ________% knowledge and ________%
behavior.
20, 80
Interest paid on interest previously earned
compound interest
A written budget, if followed, removes ________ from your finances.
Overspending, Guilt, Management by crisis, All of the above
A credit score is intended to measure:
The risk of your not repaying debt
This is the state that is home to the Mall of America
What is Minnesota?
Why was the use of credit uncommon prior to 1917?
A) Recognizing who you are allows you the opportunity to grow and learn.
1 Once you know your money personality, you can develop a financial plan that works for you.
2. Knowing your money personality allows you to excuse excessive spending because it is simply part of your nature.
Spending more money than you make and acquiring debt.
Negative savings rate
Series of envelopes that are divided into categories and are used to store cash for planned monthly expenses
envelope system,
A long-term rental agreement on a car; a form of secured long-term debt
lease
What chess piece can move in an L-shape?
What is the knight?
A person or business that offers loans at extremely high interest rates
loan shark
Using the sinking fund approach, how much do you have to save each month to buy a $4,800 car one year from now?
$400.
The zero-based budget is the best method of budgeting because:
The zero-based budget ensures that every dollar you make is assigned a specific purpose
A decrease or loss in value
inflation
What is the type of sushi with octopus?
What is Tako?
During the Great Depression, New Deal policymakers came up with mortgage (home loans) and consumer lending policies that convinced commercial banks that:
Consumer credit could be profitable
- Save a $500 emergency fund so that you do not have to go into debt if a financial emergency arises.
- Get out of debt and stay out of debt. Debt prevents you from building wealth.
- Pay cash for a car. Use the sinking fund approach to buy cars.
- Pay cash for college in order to avoid student loan debt.
- Build wealth and give in order to achieve complete financial well-being.
The Five Foundations.
Why is it important to maintain a file of both paper and electronic financial records?
1. As a reference for filing taxes,
2. So that you always have an accurate account balance,
3. So that you can catch errors made by the bank,
4. So that youʹre aware of fraudulent activity on your account.
When a person owes more on an item (like a car or house) than it is worth, the person is said to be
upside down
This is the name for the colored part of the eye.
What is the iris?