Money Management Basics
This financial concept involves managing your money by earning, budgeting, saving, spending, and giving.
What is personal finance?
After World War I, this became more socially acceptable as the demand for products increased.
What is credit?
This is an essential piece of financial advice to maintain when dealing with credit cards or loans.
What is avoiding debt?
The First Foundation advises this financial practice to ensure you're prepared for emergencies.
What is save $500 for emergencies?
This type of person is typically cautious with their spending and focuses on saving money.
What is a saver?
To calculate your net worth, you subtract your blank from your assets.
What is liabilities?
This foundation is about saving up for unexpected situations, such as car repairs or medical bills
What is save $500?
This is the social term used to describe the situation where someone’s expenses exceed their income, and they rely on credit.
What is living paycheck to paycheck?
A short-term financial goal typically takes this long to achieve.
What is under 2 years?
The term for someone who enjoys spending money frequently, even without a plan.
What is a spender?
This principle suggests living below your means by saving more than you spend.
What is living on less than you make?
When banks entered the credit business before 1920, they were able to charge exceptionally high blank.
What is interest rates?
It is possible to pay for college without borrowing money through student loans, according to this concept.
What is paying cash for college?
The second foundation of personal finance involves this action.
What is getting out of debt?
Knowing whether you are a spender or a saver helps with managing money by ensuring you do this.
What is avoiding overspending or excessive saving?
This term refers to the process of creating financial goals and a plan to reach them.
What is budgeting?
The best way to avoid running out of money too quickly is to do this regularly.
What is planning and setting goals for your money?
This association made it easier for students to borrow money for college in 1972.
What is the Student Loan Marketing Association (SLMA)?
This financial goal is related to paying cash for major purchases like your car.
What is pay cash for your car?
This term describes the financial concept that includes behavior, emotions, and habits when it comes to money.
What is money personality?
Knowing how much money you have, your income, and your financial goals are all part of understanding this.
What is financial literacy?
The Fifth Foundation is focused on this aspect of financial planning.
What is build wealth and give?
This term refers to a situation where you owe more than you own, resulting in a negative net worth.
What is being in debt?
These are five essential actions to lay the groundwork for a secure financial future.
What are the Five Foundations?
The phrase "20% head knowledge, 80% behavior" describes the balance between blank and blank in personal finance.
What are behavior and head knowledge?