Personal Finance

Front

Which of the following is a benefit of having a personal savings plan? Personal savings plans let people spend more time doing activities they enjoy. People who save money are able to spend more money in the future and pay for unexpected expenses. People who save money are able to spend a lot of money right now. Personal savings plans help people have an unbalanced budget.

Back

People who save money are able to spend more money in the future and pay for unexpected expenses.

Front

A balanced budget is when expenses are greater than income.

Back

False

Front

Which of the following is an example of income?
Charging a lunch you will pay tomorrow
Buying an ice cream at lunch today
Money you get for working a job
Trading supplies with a friend

Back

Money you get for working a job

Front

What is the difference between income and expense (expenditures)?

Back

An income is money that is received; an expenditure is money that is spent.

Front

What is an opportunity cost?

Back

The thing you give up when you make a choice.

Front

This type of interest "creates a mathematical explosion," and it can make you wealthy over time, or keep you in debt for a long time.

Back

compound

Front

401(k), IRA, and Roth IRA are all examples of a __________ account.

Back

Retirement

Front

What does CD stand for when talking about investments?

Back

Certificate of Deposit

Front

A mutual fund allows investments to be ___________.

Back

Diversified

Front

This type of retirement account offered by employers to their employees allows them to set aside tax-deferred income. Sometimes employers will even match the employee contribution up to a certain amount.

Back

401(k)