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Foundations of Persona Finance Ch. 1 Flashcards | StudBud
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Foundations of Persona Finance Ch. 1
Foundations of Persona Finance Ch. 1
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Flashcards
30 cards
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Practice quiz
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Questions
30
Answers
1
When you set financial goals, they should be . . .
Specific and measurable
Specific, measurable, time-sensitive, yours,and written
Timely, bank-based, specific, and yours
Only time-sensitive
2
As a single adult, you should...
Beware of planned and budgeted buying
Keep managing your money as a priority
Have an accountability partner you trustsomewhat
Seek a financial counselor or advisorby age 25
3
What does living paycheck to paycheck mean?
income is devoted to expenses so little to no money is put in savings.
when someone awaits their next paycheck to plan for the month’s expe
person chooses to not deposit their paycheck
cannot plan past the next paycheck due to financial difficulties
4
Making the right choices with your money—managing your money—involves knowing how . . .
Earning, budgeting, saving, spending, and giving affect your money
To make bank deposits using registers with the appropriate transactions
Consumer decisions will affect your accounts
Planning, saving, spending, investing will define your financial portfolio
5
To gain an understanding of your personal finances, you should know . . .
Where you stand, how much income you have, what goals you want to set
Your financial goals
Your investment portfolio and your financial advisors’ contact information
How much income you have
6
Your money personality impacts . . .
Your understanding of bank transactions
Your financial literacy level
How you handle money
What you plan for as an adult
7
Without any debt, you can be outrageously ___.
Generous
Cautious
Selfish
Thrifty
8
You should always make sure you have a…
Direct Deposit
Credit Card
Credit Line
Budget
9
To know your net worth, subtract your liabilities from your ______.
Net income
Other liabilities
Assets
Previous net worth
10
An important money principle to consider is that you should ___ and ___ your money.
Invest; lay out
Invest; endow
Spend; invest
Save; invest
11
A money principle to keep in mind is to live on ___ you make.
Exactly 20% below what
More than
Less than
The same as
12
What is financial literacy?
The content provided in bank statements for consumers
The knowledge needed for people to manage their finances
The curriculum provided to college students about finances for degrees
The skills to read financial documents for personal
13
Personal finance is all the financial decisions a(n) ______ must make in order to earn, budget, save, spend, and give.
Company or organization
Individual or company
Individual or family
Bank
14
In 1972, what association made borrowing money to attend college much easier than it had been?
The Student Loan Approval Association(SLAA)
The Student Loan Marketing Association(SLMA)
The Student Federal Funding Association(SFFA)
The Federal Student Approval Association(FSAA)
15
What is the first foundation?
Build wealth and give.
Open a checking account.
Pay cash for college.
Save a $500 emergency fund.
16
If your assets total more than your liabilities, you will have a(n) ___ net worth.
Equal
Positive
Unknown
Negative
17
F. D. Roosevelt passed the New Deal because of the Great Depression in the 1930s. What was the purpose of this program?
To divide the national budget in half and distribute it
To promote economic recovery and social reform
To alleviate financial concerns with theUnited Nations
To create a borrowing system within the country
18
It is possible to pay for college with cash.
True
False
19
What is The Fifth Foundation?
Pay cash for your car.
Get out and stay out of debt.
Find a financial professional.
Build wealth and give.
20
Avoiding debt can lead to financial freedom and hope.
False
True
21
Savers have a tendency to be...
Strict with their money and not spend any of it
Strict with their purchases but spend money without a plan
Strict with what they spend their money on, other than groceries
Strict with only purchases for themselves
22
Using credit has not always been a socially accepted practice, but it has become . . .
Less acceptable
Necessary for life in America
Normal in American culture
A practice used by the wealthy
23
What are The Five Foundations?
A personal financial action plan
A common conclusion for debt
A financial literacy technique
A starting point for adults regarding finances
24
What is the best way to avoid running out of money too quickly?
You can invest in college
You can avoid making any purchases for the next 30 days.
You can put your money in a safe place, like a bank, and not spend it.
You can make it a habit to plan and set goals for your money.
25
After World War I, the demand for products increased, and people began getting credit without loan sharks, so credit…
Was offered at even higher interest rates by loan sharks
Was devalued in the marketplace
Increased so rapidly, loan sharks became obsolete
Started to become more socially acceptable
26
Banks got into the credit business before 1920 because charging exceptionally high interest rates was legal.
False
True
27
Being a spender has many more positives than being a saver.
True
False
28
You are either only a natural saver or a natural spender. You cannot have a balance of both.
True
False
29
Personal finance is 20% ___ and 80% ___ .
Cause; effect
Behavior; head knowledge
Reactions; behaviors
Head knowledge; behavior
30
A ___ financial goal takes up to two years to reach.
Long-term
Short-term
Medium-term
Five-level
