Fill in the Blank
The ______ is a strategy that involves waiting a full day before buying a non-essential item to decide if you really need to make that purchase
24-hour rule
The budgeting process starts with monitoring current spending?
True
Why is preparing for unexpected financial costs/emergencies important?
Because if you don't have money saved for unexpected costs, you can end up in debt or unable to take care of yourself/others.
What can you do if financial information is confusing or inaccessible?
Find free creators online who post financial content or by reaching out to local/national organizations who promote financial literacy
The ____ is a specific calendar or pattern of discounts stores follow when they need to clear out old stuff.
Sales Cycle
Rent is an example of a fixed expense.
True! Fixed expenses are costs that stay the same every month, such as rent and monthly subscriptions
How can you combat impulse purchases?
By following the 24-hour rule
Give 2 examples of variable expenses
Shopping, restaurants, concerts/movies, car or phone repairs, etc
The ___ is the "best time to buy" an item, like buying a swimsuit in the fall or a winter coat in the spring
Off-Season
You should wait until you turn 28 to start investing.
False! It is best to start investing as early as possible
Why is the savings section the smallest part of the 50/30/20 method?
Because it balances long-term financial security while also covering your immediate cost of living prices. It is structured this way to create a realistic savings plan for people without unsustainable sacrifices t
Will a budget give you more money?
No - it just teaches you HOW to control your finances which can result in saving more money, but it does not bring in more cash
Strategic shopping is all about ____. The slides say if you know when to buy, you control the price.
Timing
To get massive discounts on items for school, the slides say you should wait until the back-to-school rush ends
True! Buying school products after the rush can allow you to purchase more for less and get discounts on bulk items
What is the 30 (wants) part of the 50/30/20 method sometimes referred to?
"Quality of life" expenses
This is the primary takeaway of the doubling penny example: you don't need a lot of money to start investing, you just need this.
Time
Described as "magic," _____ is where your money grows faster over time because you earn interest on your interest.
Compound Interest
Flexible expenses stay about the same each month
False! Some months you spend more, for example if its your friends birthday, and some months you won't spend as much
According to the "24-Hour Rule," you should wait a full day before buying something if it costs more than this specific amount.
$20
What does the 50/30/20 method stand for?
50 = Savings
30 = Wants
20 = Needs