Personal Finance Flashcard

Front

When it comes to personal finance, the math is easy. What's challenging is managing your ___________.

Back

money

Front

Which of the following is NOT a reason credit is marketed heavily to consumers in the United States?
The credit industry has become extremely profitable.
The use of credit is not socially accepted in the United States.
There is strong consumer demand for big-ticket items.
Since 1920, credit laws in the United States have been relaxed in an attempt to create a mainstream alternative to loan sharks for the working class.

Back

The use of credit is not socially accepted in the United States.

Front

Which of the following best explains why students should learn about personal finance? Options: Personal finance skills are better learned through trial and error. Personal finance skills are highly complex and require a great deal of time to learn. Learning to manage money at this stage can eliminate financial mistakes and promote huge financial benefits for the future. Learning to manage money will help you achieve a profitable career.

Back

Learning to manage money at this stage can eliminate financial mistakes and promote huge financial benefits for the future.

Front

Most Americans today are wealthy and will have financial security when they retire.

Back

False

Front

The granting of a loan and the creation of debt; any form of deferred payment

Back

Credit

Front

Most Americans avoid the use of credit when it comes to buying big-ticket items like a car or furniture for their home.

Back

False

Front

Your income level greatly affects your saving habits.

Back

True

Front

Which of the following statements best explains why income alone does not determine wealth?
- Investing is the only factor that contributes to wealth building.
- How much money a person makes does not dictate his or her spending and saving behavior.
- Income alone does determine a person's wealth.
- Only people who are natural savers can become wealthy.

Back

How much money a person makes does not dictate his or her spending and saving behavior.

Front

Which of these is not a key to saving money?
Your income, Focus, Making saving a habit and priority, Discipline

Back

Your income

Front

Why is having a fully funded emergency fund so important when it comes to your financial well-being?

Back

The purpose of an emergency fund is to set money aside for unexpected financial emergencies and to provide a sense of financial security.