Intro to Personal Finance
This is what you have when you subtract your liabilities from your assets.
What is net income?
This is a plan one uses on how they will spend and use their money.
What is a budget?
What are the three primary reasons to save money?
What are emergencies, large purchases, and wealth building?
This is the term for the price on a new car before one chooses to finance it.
What is a sticker price?
These two terms describe the two different personalities people have when it comes to what they do with their income.
What are spenders and savers?
Personal Finance is said to be 20% head knowledge, with the remaining 80% attributed to this.
What is behavior?
About this percentage of Americans roughly use a budget.
What is 35% percent?
It is recommended that one starts investing after graduating from college, living debt free, and have saved this time frame of living expenses.
What is 3-6 months?
Loan agencies and credit card companies often use this ploy to encourage consumers to purchase their service/product, offering this rate that claims you don't have to pay interest for the first select amount of months.
What is a zero-interest rate?
What is Murphy's Law?
What three time lengths are used for setting financial goals?
What are Short-Term goals (take up to 2 years), Medium-Term (take 2-5 years), and Long-Term (takes longer than five years to reach).
The amount of money that you take home on your paycheck.
What is net income?
While compound interest is earned at a fixed rate, this is an average based on an investment's past performance.
What is compound growth?
This, also known as a credit score, is a number that tells banks and lenders how likely one is to repay their debt.
WHat is a FICO score?
These kinds of loans require the borrower to put up the collateral, which is an asset like a car or house, in order to obtain a loan.
What is a secured loan?
This event in US history changed the social acceptance of debt in the country.
What is World War 1?
This refers to a budget that assigns a job to each dollar, account for each expense based on income.
These are commonly referred to as the two most important habits one can have to build wealth.
What are consistently investing money and allowing it to grow?
The total amount of a loan, plus any taxes and fees. This is typically paid when purchasing a car through direct financing.
What is the principal?
Name at least two ways that credit card companies make money?
What are interest, hidden fees, late charges, or processing fees?
What are the Five Foundations of personal finance?
What is Save a $500 Emergency Fund, Get out of debt and stay out out debt, Pay cash for your car, Pay cash for college, and Build wealth and give?
What are the Four Walls of a budget?
What are food, utilities, shelter, and transportation?
What three questions should you ask when determining if something is an emergency?
These two antonyms of each describe the value of certain large purchases, such as land as one example, while a car can be described as the other.
What are appreciation and depreciation?
Expenses come in different shapes and sizes, with some occurring regularly while others are very seldom. Name and describe two of the four?