Intro to Personal Finance

Key components of financial planning include all of the following except:

• Write out a detailed plan for accomplishing your goals

• Replace money myths with money truths

• Allow your financial planner to make all of your major money decisions

• Regularly monitor and reassess your financial plan

Personal financial success is primarily the result of:

• Managing your money behavior

• Winning the lottery

• Generous welfare and unemployment programs

• Inheriting money from your parents

Why was the use of credit uncommon prior to 1917?

• Laws prevented lenders from charging high interest rates.

• Borrowing money was generally not socially acceptable.

• Lending money to others was not profitable

• All of the above.

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

• True

• False

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

• 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

Having debt keeps you from building wealth.

• True

• False

Which of the following statements best explains why income alone does not determine wealth?

• Investing is the only factor that contributes to wealth building.

• Income alone does determine a personʹs wealth.

• Only people who are natural savers can become wealthy.

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

Which of the following is not a factor in becoming money smart?

• Have knowledge of basic math

• Learn the language of money

• Manage your behavior with money

• Learn how to read your credit card statements

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

• Retirement
• College Savings
• Low Interest
• Stock