Financial Literacy Flashcard

Front

According to the lesson, what is a benefit of saving and paying cash for large purchases early in life?

Back

It helps in avoiding debt in the future.

Front

Aside from cars, what are some common large purchases that often financing or payment options should be avoided?

Back

Furniture, appliances, smartphones, boats, etc.

Front

What is the main idea of planning ahead for large purchases and saving over time?

Back

It allows you to avoid paying interest on credit card purchases.

Front

What is the advantage of buying your car with cash according to the text?

Back

You can avoid a high-interest 72-month car loan.

Front

What does the Third Foundation suggest about car payments?

Back

Car payments should be avoided if possible.

Front

According to the text, what is a downside of not saving and instead using credit to make a large purchase?

Back

You may end up paying more than the item's worth over time.

Front

What is a key piece of advice given before making a large purchase like a car or a new laptop?

Back

Be very intentional any time you plan to drop a serious chunk of change.

Front

Why is it important to avoid rushing into a big purchase according to the text?

Back

You may end up buying something you don't actually want or need.

Front

What is the disadvantage of zero-interest or '12 months same-as-cash' promotions?

Back

They require you to pay extra interest rates if you don't pay the entire amount within the promotional period.

Front

What is the main advantage of saving up for large purchases instead of borrowing money for them?

Back

You avoid paying interest.