Chapter 2 Personal Financial Planning Review

Front

A ________ is a plan for the use of money over time based on goals, expenses, and expected income

Back

budget

Front

Allowance, a paycheck, gifts and gains from an investment are examples of ______.

Back

income

Front

Which one of these expenses most likely represents a VARIABLE cost in someone's budget? Gas, Rent, Car insurance premium, Student Loan payment

Back

Gas

Front

Monthly rent payments are an example of a(n) _____ expense.

Back

fixed expense

Front

When putting together a budget, which of the following items should you include? Fixed Expenses, Discretionary Expenses, Savings.

Back

All of the above.

Front

How do you calculate net worth?

Back

Total assets - Total liabilities

Front

In the 50/30/20 budget, _____% of your budget should be for wants.

Back

30%

Front

Every month Jessica is overspending in her budget and decreasing her savings account as a result. What action would you recommend to Jessica? Options: Write a new lease for 25% less, Stop paying her credit card bill and put it in savings, Start packing her lunch instead of dining out, Quit her job and look for a better one

Back

Start packing her lunch instead of dining out

Front

Beginning, expanding, developing, launching and aging are the stages in the ______________________.

Back

family life cycle

Front

If you make $2,000 per month and budgeted $1,000 for fixed expenses and $500 for variable expenses, how much discretionary income will you have?

Back

$500