Personal Finance Review

Monitoring financial accounts and reading bank statements on a regular basis can help detect activities associated with

• Personal hijacking

• Property infringement

• Identity theft

• security fraud

The process of matching your checkbook register with the bank statement is called

• journaling

• reconciing

• totaling

• depositing

The equation for computing your statement of financial position is

• Net Worth = Assets - liabilities

• Net worth = Assets + Liabilities

• Assets - liabilities - Net Worth

• Net Worth - Assets = Liabilities

Which of the following is NOT considered a need?

• Shelter

• A car

• Shoes

• Medical Care

Which of the following is NOT something that influences your personal values?

• Family

• Experiences

• Beliefs

• Financial Status

An example of a fixed expense is

• Rent

• car maintenance

• grocery expenditures

• the electric bill

An example of an occasional expense is

• Buying gas for your car

• Getting an oil change for your car

• receiving cash from your grandma for Christmas

• paying your parents each month for car insurance

Before you make a purchase over $50 you should

• Use the Stop, Drop and Think Test before you buy.

• Walk away and think about it for 24 hours.

• See if it fits with your budget and goals.

• All of the above.

When using the DECIDE Method to make a purchase decision, the first thing you need to do is

• Make a goal

• Establish a criteria for a successful purchase

• Compare 2 or 3 options

• Evaluate your choice

One advantage of setting attainable goals is that you

• Work harder to achieve a very high goal.

• Can measure your progress.

• Are less likely to get discouraged

• Can picture it in your mind.