Chapter 3- Money Management

A home fire safe box is the best place to keep an heirloom ring, birth certificate, & passport.

What is a plan for using money to meet wants and needs?

TRUE or FALSE: If unable to pay all your debts, you may experience insolvency?

Millionaires can struggle financially if they have poor money management skills.

The first step in planning a budget is:

A deficit is when more money is spent than is earned or received.

The total of cash inflow include all the monies that you earn or receive.

An example of a variable expenses includes:

The debts that you owe are called??

What is not a catagory of wealth?

An example of a liquid asset it called?

TRUE or FALSE: You should keep cash in a safe deposit box at a bank.

An example of a current liability:

Which pay is larger?

The formula for net worth is "Liabilities - Assets= Net Worth"

Land and any structures that are on it that a person or family owns is called?

TRUE or FALSE: Do not keep hard-to-replace documents in a drawer at home.

TRUE or FALSE: When net cash flow changes, so does net worth

A disadvantage of using a safe deposit box at a bank is:

A cash flow statement gives you important feedback on:

Insolvency occurs when the total of your liabilities exceeds that of your assets.

How many checks will you get over the course of the year if you get paid every other week?

Salaried employees are entitled to overtime once they work more than 40 hours in one work week.

A savings option many employers offer is:

The total of your fixed and variable expenses is your cash outflow.

Every decision involves a trade-off or _____

What is another word for Personal Balance Sheet?

A measure of the changes in prices for commercially purchased goods and services:

The deed (ownership document) to your house is an example of a personal financial document

When creating your budget, and estimating your income, use bonuses and commission earnings.

A overall plan to help you get the most from your money is called?

Your net worth goes up when you-

Take home pay (net pay) is equal to your salary.

Extra money that can be spent or saved, depending on a person's financial goals and values is?

A good budget is:

Which of the following is an example of a personal financial document?

What financial needs should you set aside assets for?

What is the rate for overtime?