Budgeting
Being a spender has more positives than being a saver. True or False?
False
What is the first foundation?
Save $500 emergency fund
Savers have a tendency to be ....
Strict with their money
Banks use the ______ score in order to determine how likely a consumer is to repay their debt
FICO score
A financial goal that takes up to 2 years to reach is considered what kind of goal?
Short-Term
Avoiding debt can lead to financial freedom and hope. True or False?
True
What are the Five Foundations an example of?
A Personal Financial Action Plan
An important money principle to consider is that you should ___ and _____ your money
Save; Invest
What is a "FAIR" credit score?
670-739
What is Financial Literacy?
The knowledge and skill base necessary for people to be informed consumers and manage their finances effectively.
You should always make sure you have a ....
Budget
Personal Finance is 20% _____ and 80% _______?
Head knowledge; Behavior
What does living paycheck to paycheck mean?
When a person's income is devoted to expenses which, in turn, means that little to no money is put into savings
Name the 3 Credit Bureaus.
Equifax, Transunion, Experian
Banks got into the credit business before 1920 because charging exceptionally high interest rates was legal. True or False.
False
A money principle to keep in mind is to live on ___ you make.
Less than
What is the 3rd Foundation?
Pay cash for your car
If your assets total more than your liabilities, you will have a _______ net worth.
Positive
35% of the FICO score is determined by?
Payment History
Using credit has not always been a socially accepted practice, but it has become _____
Normal in American Culture
To know your net worth, subtract your liabilities from your ______.
Assets
What is the 5th Foundation?
Build wealth and give
Without any debt, you can be outrageously ______.
Generous
Your total debt to income ratio should be less than ___.
30%
After World War I, the demand for products increased, and people began getting credit without loan sharks. Because of this, Credit ....
Started to become more socially acceptable