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

Student Loan Marketing Association

Franklin D. Roosevelt passed the New Deal after the Great Depression. What was the purpose of the program?

to promote economic recovery and social reform

As a single adult, you should ...

keep managing your money as a priority

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

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

What are The Five Foundations?

a personal financial action plan

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

Where you stand financially, you income, goals and how to reach them

What does living paycheck to paycheck mean?

a person's income is devoted to expenses; little or no money for savings

What is financial literacy?

The knowledge & skills necessary to be informed consumers & manage finances

Savers have a tendency to be ...

strict with their money and not spend any of it

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

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

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

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

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2021-22 Ch. 1- Introduction to Personal Finance

30 termsStudBud Administration106 plays

Money Matters

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Questions 30

Answers

1
In 1972, what association made borrowing money to attend college much easier than it had been?
Federal Student Approval Association
Student Federal Funding Association
Student Loan Marketing Association
Student Loan Approval Association
2
Franklin D. Roosevelt passed the New Deal after the Great Depression. What was the purpose of the program?
to create a borrowing system within the country
to promote economic recovery and social reform
to divide the national budget in half and distribute it
to alleviate financial concerns with the United Nations
3
You should always make sure you have a…
direct deposit
credit card
budget
credit line
4
Without any debt, you can be outrageously ___.
cautious
selfish
generous
thrifty
5
Avoiding debt can lead to financial freedom and hope.
False
True
6
Your money personality impacts ...
how you handle money
your understanding of bank transactions
your financial literacy level
what you plan for as an adult
7
A money principle to keep in mind is to live on _______ you make.
more than
same as
less than
Exactly 20% below what
8
An important money principle to consider is that you should ___ & ____ your money.
invest; lay out
save; invest
spend, invest
invest; endow
9
As a single adult, you should ...
keep managing your money as a priority
seek a financial counselor or advisor by age 25
beware of planned and budgeted buying
never seek financial advice from others
10
What is The Fifth Foundation?
pay cash for car
get out and stay out of debt
build wealth and give
find a financial professional
11
Being a spender has many more positives than being a saver.
True
False
12
What is the best way to avoid running out of money too quickly?
You can put your money in a safe place, like a bank, and not spend it.
You can invest in college
You can make it a habit to plan and set goals for your money
You can avoid making any purchases for the next 30 days.
13
To know your net worth, subtract your liabilities from your _____.
other liabilities
assets
net income
previous net worth
14
If your assets total more than your liabilities, you will have a(n) ___ net worth
negative
positive
unknown
equal
15
Banks got into the credit business before 1920 because charging exceptionally high interest rates was legal.
False
True
16
Personal finance is 20% ___ and 80% ___.
behavior; head knowledge
head knowledge; behavior
cause; effect
reactions; behaviors
17
What is The First Foundation?
pay cash for college
build wealth and give
open a checking account
save $500 for emergency fund
18
What are The Five Foundations?
a financial literacy technique
a common conclusion for debt
a personal financial action plan
a starting point for adults regarding finances
19
You are either only a natural saver or a natural spender. You cannot have a balance of both.
True
False
20
To gain an understanding of your personal finances, you should know . . .
How much income you have
Your investment portfolio and your financial advisor's contact info.
Where you stand financially, you income, goals and how to reach them
Your financial goals
21
After WW I, the demand for products increased, people began getting credit without loan sharks. Because of this, credit
became socially acceptable
offered at even high interest rates by loan sharks
increased so quickly that loan sharks became obsolete
was devalued in the market place
22
What does living paycheck to paycheck mean?
person can't plan past the next payck due to financial & budgeting problem
a person chooses to not deposit their pay, they are living payck to payck
a person's income is devoted to expenses; little or no money for savings
a person eagerly awaits their next paycheck to plan for upcoming expenses
23
What is financial literacy?
skills to read financial documents for personal finance classes
The knowledge & skills necessary to be informed consumers & manage finances
curriculum provided to college students about financing their degree
The content provided in a bank statement
24
Personal finance is all the financial decisions a _ must make to earn, budget, save, spend, and give money over time.
individual or company
individual or family
bank
company or organization
25
Savers have a tendency to be ...
strict with what they spend their money on, other than groceries
strict with purchasees for only themselves
strict with their purchases but spend money without a plan
strict with their money and not spend any of it
26
A ___ financial goal takes up to two years to reach
short-term
long-term
27
When you set financial goals, they should be ...
only time-sensitive
timely, bank-based, specific, and yours
specific and measurable
specific, measurable, time-sensitive, yours, and written
28
It is possible to pay for college with cash.
True
False
29
Making the right choices with your money—managing your money—involves knowing how . . .
consumer decisions will affect your accounts
make bank deposits using registers with the appropriate transaction listed
planning, saving, investing & spending will define your financial portfolio
earning, budgeting, saving, spending and giving affect your money
30
Using credit has not always been socially accepted practice, but it has become ...
normal in American culture
less acceptable
a practice used by the wealthy
necessary for life in America

2021-22 Ch. 1- Introduction to Personal Finance Flashcards | StudBud