Personal Finance Basics
What is the term for setting aside money for future use rather than spending it immediately?
Savings
What is the term for the knowledge and skills needed to make informed and effective financial decisions?
Financial Literacy
What is the primary purpose of a budget?
To manage income and expenses effectively.
What does EI stand for?
Emotional Intelligence
What is self-care?
Activities that help maintain overall well-being.
What is the difference between gross income and net income?
Gross income is earnings before taxes; net income is earnings after taxes.
Name one common reason people create a budget.
To manage expenses and avoid debt.
What does the 50/30/20 rule allocate for "wants"?
30%
Name one key component of EI.
Self-awareness, self-regulation, empathy, social skills, or motivation.
Name one benefit of self-care for leaders.
Reduces stress, improves decision-making, or boosts resilience.
Name the budgeting strategy that allocates every dollar to a specific purpose, leaving a balance of $0.
Zero-Based Budgeting
What is one factor to consider when deciding whether to spend or save money?
The urgency or importance of the expense versus long-term financial goals.
Name one example of a fixed expense.
Rent or mortgage payment.
Car Payment.
How does empathy benefit leaders?
It helps them connect with their team and foster collaboration.
What is the term for setting limits to protect time and energy?
Boundaries
According to the 50/30/20 rule, what percentage of income should go toward savings and debt repayment?
20%
What is the term for money borrowed that must be paid back with interest?
Debt
Why is tracking expenses important in budgeting?
It ensures you stay within your budget and make informed financial decisions.
What is the difference between IQ and EQ?
IQ measures intellectual abilities; EQ measures emotional and social abilities.
Why is journaling a valuable self-care activity?
It improves self-awareness and helps manage stress.
What are the three main types of expenses in budgeting?
Fixed, variable, and periodic expenses.
What is the term for spreading investments across different types of assets to reduce risk?
Diversification
What term describes assigning money for specific needs or goals?
Allocation
Name one way leaders can reduce stigma around mental health.
By fostering openness, showing empathy, and leading by example.
What is the main goal of work-life balance?
To effectively manage personal and professional responsibilities without one negatively impacting the other.