Lesson 1
You should always make sure you have a…
A. Budget
B. Credit line
C. Direct deposit
D. Credit card
A. Budget
Using credit has not always been a socially accepted practice, but it has become . . .
A. Less acceptable
B. A practice used by the wealthy
C. Necessary for life in America
D. Normal in American culture
D. Normal in American culture
A money principle to keep in mind is to live on ______ you make.
A. Exactly 20% below what
B. More than
C. The same as
D. Less than
D. Less than
A financial goal takes up to two years to reach.
A. Five-level
B. Short-term
C. Medium-term
D. Long-term
B. Short-term
Being a spender has many more positives than being a saver.
A. True
B. False
B. False
An important money principle to consider is that you should ______ and _______ your money.
A. Save; invest
B. Invest; lay out
C. Spend; invest
D. Invest; endow
A. Save; invest
Banks got into the credit business before 1920 because charging exceptionally high interest rates was legal.
False
Without any debt, you can be outrageously _______.
A. Selfish
B. Generous
C. Cautious
D. Thrifty
B. Generous
When you set financial goals, they should be . . .
A. Timely, bank-based, specific, and yours
B. Specific, measurable, time-sensitive, yours, and written
C. Specific and measurable
D. Only time-sensitive
B. Specific, measurable, time-sensitive, yours, and written
What is financial literacy?
A. The content provided in bank statements for consumers
B. The knowledge and skill base necessary for people to be informed consumers and manage their finances effectively
C. The curriculum provided to college students about finances for their degrees
D. The skills to read financial documents for personal finance classes, goals, and statements
B. The knowledge and skill base necessary for people to be informed consumers and manage their finances effectively
Personal Finance is 20% ________________ and 80% ____________________.
Head Knowledge; Behavior
After World War I, the demand for products increased, and people began getting credit without loan sharks. Because of this, credit…
A. Started to become more socially acceptable
B. Increased so rapidly, loan sharks became obsolete
C. Was offered at even higher interest rates by loan sharks
D. Was devalued in the marketplace
A. Started to become more socially acceptable
Making the right choices with your money—managing your money—involves knowing how . . .
A. Planning, saving, spending, and investing will define your financial portfolio
B. To make bank deposits using registers with the appropriate transactions listed
C. Consumer decisions will affect your accounts
D. Earning, budgeting, saving, spending, and giving affect your money
D. Earning, budgeting, saving, spending, and giving affect your money
To gain an understanding of your personal finances, you should know . . .
A. Your financial goals
B. Where you stand financially, how much income you have, what goals you want to set, and how you’ll reach those goals
C. How much income you have
D. Your investment portfolio and your financial advisors’ contact information
B. Where you stand financially, how much income you have, what goals you want to set, and how you’ll reach those goals
Savers have a tendency to be . . .
A. Strict with their purchases but spend money without a plan
B. Strict with only purchases for themselves
C. Strict with what they spend their money on, other than groceries
D. Strict with their money and not spend any of it
D. Strict with their money and not spend any of it
What does living paycheck to paycheck mean?
A. Living paycheck to paycheck is an expression used to describe a situation when someone eagerly awaits their next paycheck to plan for the month’s expenses.
B. Living paycheck to paycheck is an expression used to explain the situation in which a person cannot plan past the next paycheck due to financial and budgeting difficulties caused by outside circumstances.
C. Living paycheck to paycheck occurs when a person’s income is devoted to expenses which, in turn, means that little to no money is put in savings.
D. When a person chooses to not deposit their paycheck, they are living paycheck to paycheck.
C. Living paycheck to paycheck occurs when a person’s income is devoted to expenses which, in turn, means that little to no money is put in savings.
Franklin D. Roosevelt passed the New Deal because of the Great Depression in the 1930s. What was the purpose of this program?
A. To promote economic recovery and social reform
B. To create a borrowing system within the country
C. To alleviate financial concerns with the United Nations
D. To divide the national budget in half and distribute it
A. To promote economic recovery and social reform
What is the best way to avoid running out of money too quickly?
A. You can make it a habit to plan and set goals for your money.
B. You can avoid making any purchases for the next 30 days.
C. You can put your money in a safe place, like a bank, and not spend it.
D. You can invest in college.
A. You can make it a habit to plan and set goals for your money.
As a single adult, you should . . .
A. Keep managing your money as a priority
B. Have an accountability partner you trust somewhat
C. Beware of planned and budgeted buying
D. Seek a financial counselor or advisor by age 25
A. Keep managing your money as a priority
Your money personality impacts . . .
A. Your understanding of bank transactions
B. How you handle money
C. Your financial literacy level
D. What you plan for as an adult
B. How you handle money
Why is personal finance dependent upon your behavior?
Personal Finance is only 20% head knowledge. It is 80% behavior. Just because you know what to do doesn't mean that you will do it.
In 1972, what association made borrowing money to attend college much easier than it had been?
A. The Student Loan Marketing Association (SLMA)
B. The Student Loan Approval Association (SLAA)
C. The Federal Student Approval Association (FSAA)
D. The Student Federal Funding Association (SFFA)
A. The Student Loan Marketing Association (SLMA)
What are 2 things that make sticking to a budget difficult?
The world wants you to spend, they make it convenient, comparison
______________ - ______________ =
Assets- Liabilities= Net Worth
Name The Five Foundations in order.
1. Save a $500 emergency fund
2. Get out and stay out of debt
3. Pay cash for your car
4. Pay cash for college
5. Build wealth and give