Chapter 1 Review

Question 1

What is the best way to avoid running out of money too quickly?

Accepted Answer

You can make it a habit to plan and set goals for your money.

Question 2

Avoiding debt can give you financial peace and a sense of hope for the future.

Accepted Answer

True

Question 3

Making the right choices with your money—managing your money—involves knowing how . . .

Accepted Answer

Earning, budgeting, saving, spending, and giving affect your money

Question 4

Using credit has not always been a socially accepted practice, but it has become . . .

Accepted Answer

Normal in American culture

Question 5

To know your net worth, subtract your liabilities from your _________.

Accepted Answer

Assets

Question 6

To gain an understanding of your personal finances, you should know . . .

Accepted Answer

Where you stand, your income, what goals you have, and how to reach them

Question 7

As a single adult, you should . . .

Accepted Answer

Keep managing your money as a priority

Question 8

A __________ financial goal takes up to two years to reach.

Accepted Answer

Short-term

Question 9

It is possible to pay for college with cash.

Accepted Answer

True

Question 10

Personal finance is 20% _________ and 80% __________ .

Accepted Answer

Head knowledge; behavior

Question 11

Franklin Roosevelt passed the New Deal because of the Great Depression in 1930s. What was the purpose of this program?

Accepted Answer

To promote economic recovery and social reform

Question 12

Being a spender has many more positives than being a saver.

Accepted Answer

False

Question 13

After WW I, the demand for products increased, and people began getting credit without loan sharks. That's why, credit…

Accepted Answer

Started to become more socially acceptable

Question 14

Banks got into the credit business before 1920 because charging exceptionally high interest rates was legal.

Accepted Answer

False

Question 15

Living on less than you make means not:

Accepted Answer

Spending all your money

Question 16

You should always make sure you have a…

Accepted Answer

Budget

Question 17

Savers have a tendency to be . . .

Accepted Answer

Strict with their money and not spend any of it

Question 18

An important money principle to consider is that you should ______ and _______ your money.

Accepted Answer

Save; invest

Question 19

Your money personality impacts . . .

Accepted Answer

How you handle money

Question 20

If your assets total more than your liabilities, you will have a(n) ________ net worth.

Accepted Answer

Positive

Question 21

Without any debt, you can be outrageously __________ .

Accepted Answer

Generous

Question 22

What is financial literacy?

Accepted Answer

The knowledge and skills necessary to be informed consumers with finances

Question 23

You are either only a natural saver or a natural spender. You cannot have a balance of both.

Accepted Answer

False

Question 24

A money principle to keep in mind is to live on __________ you make.

Accepted Answer

Less than

Question 25

What does living paycheck to paycheck mean?

Accepted Answer

occurs when all income is devoted to expenses which means little is saved.

Question 26

Almost half of all Americans report having less than _________ in savings.

Accepted Answer

$1,000

Question 27

What is The Fifth Foundation?

Accepted Answer

Build wealth and give.

Question 28

When you set financial goals, they should be . . .

Accepted Answer

Specific, measurable, time-sensitive, yours, and written

Question 29

Personal finance is all the financial decisions a(n)____ must make in order to earn, budget, save, spend, and give money

Accepted Answer

Individual or family

Question 30

What is The First Foundation?

Accepted Answer

Save a $500 emergency fund.

Question 31

The percentage of Americans who are living paycheck to paycheck is almost:

Accepted Answer

80%

Question 32

What are The Five Foundations?

Accepted Answer

A personal financial action plan

Question 33

In 1972, what association made borrowing money to attend college much easier than it had been?

Accepted Answer

The Student Loan Marketing Association (SLMA)

Chapter 1 Review

Questions 33

Chapter 1 Review

Questions 33