Unit 1 Money Management Review

To stay on track with your budget you can use the envelope system or a spreadsheet.

In order to prepare a budget, you don't need to track your spending habits.

Which of the following is a need

You need shelter, but you don't need a mansion.

It isn't necessary to evaluate your results once you've made a decision.

Example of a DISCRETIONARY expense is

Your SPENDING PLAN is written in stone and cannot be changed.

A value can be described as

I plan to save to buy a new computer in one year.

MISSING? I plan to save $2,000 for a new computer by saving my whole paycheck for 6 months.

Example of a PERIODIC expense is

Which of the following factors can influence decisions?

The money going in and out of your wallet and bank account.

You should list alternatives for major decisions and review the pros and cons.

A personal budget should be planned for a specific period of time.

When creating a budget, the goal is to have your income and expenses at least balance equally.

Which of the following could not be called income?

What you spend money on

After creating your financial plan you should never make any changes.

An advantage to using a budget is to make sure you don't spend more than you make.

Spending, saving and investing to the kind of life you want and security can be achieved by

Example of a FIXED expense is

Any amount of money you spent to buy someting that is the same amount each month.

Income (money you receive) consists of

Example of a VARIABLE expense is

What is the acronym SMART stand for?

Saving for vacation you are taking in 6 months is

Your budget shows a surplus when you

Taking some money you receive and saving it to be used on a goal or emergency.

An expensive new car is an example of a need.

WHAT'S MISSING I plan to save 5,000 for college in four years

Financial plans that are more than five years off are called

The trade-off made by making one choice instead of another is known as

PYF stands for

Saving money for the holiday is an example for a long-term goal.

Each person has different values which guide them through life.

You can think of PYF as a bill you owe yourself.

WHATS MISSING I plan to save $2,500 by saving $105 a month for two years.

The purpose of goal setting in financial planning process is to

An X-box gaming system is an example of a want.