Personal Finance Ch 1

The credit system today is structured to accommodate a state of uncertain unemployment and income instability, utilizing high interest rates and fees to turn huge profits.

• True

• False

When developing a personal financial plan, one of the first things you should do is assess your current financial situation. This includes your income, assets, and liabilities.

• True

• False

Having debt keeps you from building wealth.

• true

• false

True financial security is achieved when you money begins to generate an income-your money starts working for you.

• True

• False

Learning the language of money is not that important because you will be able to depend on financial planners to manage your money.

• True

• False

Expensive houses and new cars are a true indication of wealth.

• True

• False

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

• True

• False

Since you are a teenager, what you do now with money will have little effect on your financial future.

• True

• False

Everyone should have the same financial plan. A budget that works for one person should be sufficient for everyone.

• True

• False

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

• True

• False