Foundations in Personal Finance Chapter 3 Review

You should maintain both paper and electronic files for your financial records.

Groceries are a

The number-one cause od divorce in North America today is stress and disagreements over money.

Dave recomends opening your first checking account between ages:

A written cash flow plan

Occurs when money is withdrawn from a bank account & the available balance goes below zero.

The envelope system works great for things that don't normally have a fixed monthly expense

Which of the following statements is false?

Doing a budget does not:

Non-essential expenses

A written budget, if followed, removes ______________ from your finances.

Car repairs are a

Budgeting with an irregular income is no different than budgeting with a regular income.

Envelopes that are divided in categories & are used to store cash for planned monthly expenses

Your monthly budget should include:

A cash flow plan that assigns a specific expense to every single dollar of your income.

A summary of all the income & outgo over a certain time period

Which is the following is a consequence of overdrawing yoru chekcing account?

Writing & following a zero-based budget will help you avoid overspending & impulse purchases.

An item that is bought without previous planning or consideration of the long-term effects

You should always take care of your "Four Walls" before you pay any other bills.

Expenses that remain the same from month to month

Which of the following is not a record keeping feature you could expect from your bank?

Eating out is a:

Pay yourself first means u should assign a portion of your monthly income 2 saving & investing

Having more than 1 bank account is never a good idea since it can complicate money management

A debit card cannot be used for online purchases.

Which of the following account records would have the most current balance?

.Budgeting is trial & error.  On average, it takes ________ months to get budgeting right!

If you write a zero-based budge every month, it is not necessary to reconcile your account.

Which of the following is something that a typical millionaire would do?

To match your bank statement with your checkbook records

Online bill pay allows you to make payments without having to write a check & mail it.

Your own record of all your transactions

Rent is a:

Setting up automatic account transfers is the easiest way to build your savings account.

Percentage of Americans living paycheck to paycheck

Budgeting is crucial to your financial success.

What percentage of a banks profits are in overdraft and similar fees?