Intro to Personal Finance
A vital money principle is to live on [ ] you make.
What is less than?
What is the recommended frequency at which you should make a budget?
What is monthly?
We discussed the story of Jack and Blake when they began investing money. Why did Jack, who stopped investing at age 30, earn more than Blake, who invested for a longer period of time?
What is Jack started investing at an earlier age?
This method of paying off debt involves paying off the largest debts first and working your way down to smaller debts.
What is the snowball method?
The smartest way to buy a car is?
What is paying cash for it?
This is the meaning of the term "living like the Joneses."
What is living paycheck to paycheck?
This is identified as the first priority in your budget.
What is giving?
What are emergencies?
This kind of card acts the same as a credit card, yet does not contain hidden fees or racks up debt on your account.
What is a debit card?
This is the year in which the Student Loan Marketing Association (Sallie May) began offering government-funded student loans.
What is 1972?
This is the program did Franklin D. Roosevelt implemented to alleviate the Great Depression in the 1930s.
What is the New Deal?
When one makes money based on the percentage of total sales, it is called.
What is commission?
The amount of interest charged on a debt but not yet collected?
What is accrued interest?
This is the negative value of an asset where you owe more money on the loan than what the asset is worth.
What is negative equity?
It's the percentage of principal charged by the lender when borrowing money.
What is the interest rate?
These are the four parts of a budget.
What are income, giving, saving, and spending
This is a method of budgeting where one allocates envelopes to use for specific budget categories.
What is the envelope system?
What principle says that a certain amount of money today is worth more than the same amount in the future? Additionally, what is the term that influences this rise?
What are the time value of money and interest?
This is the term for lenders who target people in financial distress by charging high fees for loans.
Who are predatory lenders?
Creating a budget gives you what freedom?
What is permission to spend?
What should be the four criteria for setting financial goals?
What is they should be specific, measurable, time-sensitive, and yours.
This statement summarizes your income and expenses over a certain time period, which shows you what has already happened with your money.
What is a cash-flow statement?
What is the average car loan that Americans pay?
What is $554 a month?
These are agencies that gather information about your credit history and sell it to creditors who could potentially lend money to you.
What are credit bureaus?
Most credit cards work as this, where you have a credit limit and can buy multiple things at different times.
What is revolving credit?