Fool Proof Me

You kept personal spending records for seven days. You used those records to analyze your spending habits. Which items below would be good reasons to regularly keep track of your personal spending records?

A. Keeping records could help you control your spending.

B. Keeping records could help you develop a budget.

C. Keeping records could help you build good money habits.

• A

• B

• C

• ALL OF THE ABOVE

We spent a lot of time talking about the key habits of millionaires when they were in high school. Check the answer identifying the habits we talked about.

1. Stay up night and day thinking of how you can spend the big bucks!
2. Pay yourself first.
3. Work really hard every day and don't worry about the future.
4. Always think ahead.
5. When you buy toys, always buy the best quality toys, especially if they are cars.
6. Learn how to increase your income without working more.
7. Learn how to make smart decisions when it comes to money.

• A Numbers 2, 4, 6 and 7.

• B Numbers 2, 6 and 7

• C None of the above

• ALL OF THE ABOVE

According to the Department of Labor finishing even one year of college raises the average person's income a lot for the rest of that person's life.

• TRUE

• FALSE

In foolproofme.com discussed a few ways to increase your income without increasing your work. Choose the options that make sense.

1. Buying lottery tickets! They pay millions of dollars.
2. Constantly put money - any money you can - in an interest-bearing savings account.
3. Staying in school longer.
4. Cut back on your expenses!

• A. None of the above.

• B. Number 2 and 4.

• C. Number 2, 3, and 4.

• D. All of the above.

Which answer illustrates "compound interest"?

A. You open two savings accounts and put money in both.

B. You earn interest only on the original amount you deposited in your account.

C. Compounding interest only occurs on the first 10% you have earned.

D. You earn interest on the money in your savings account. Then, in addition, you earn interest on the interest.

• A. .

• B.

• C.

• D.

Which of the following expenses are usually "fixed"?

Eating out.

Monthly insurance payments.

Paying the rent.

The utility bill. Your bill from a clothing store.

Snacks during the day.

A.Number 4.

B.Numbers 2 and 3.

C.Numbers 2, 3 and 4.

D.Numbers 2, 3, 4 and 5.

• A. .

• B.

• C.

• D.

We've talked a lot about "fixed" and "variable" expenses. We've talked about the way these expenses impact your budget and your savings. We also talked about one big thing you can do about variable expenses that you cannot usually do about your fixed expenses. What was the big thing you can do?

A. You can just forget about fixed expenses.

B. You can try to lower your variable expenses since it is easier to lower your variable expenses than your fixed expenses.

C. You can give up trying to control your variable expenses.

D. You can just not worry about any of this since you can't control either fixed or variable expenses.

• A.

• B.

• C.

• D.