Ch 10 Financial Literacy

_______ is money earned over a set period of time, such as through a job or investments.

• Interest

• Income

• Wealth

• Finances

In a typical household, which of the following are variable expenses?

• Groceries

• Entertainment

• Rent or Mortgage

• Car Payment

• Dining Out

Fixed expenses are those which...

• Generally do not change from one month to the next

• Are used to repair broken items around the home

• Affix a smile upon Dr. Kaiser's face. Aww...

• Are fixin' to break the budget.

Good debt is debt that...

• Does not exist. (There is no such thing as good debt)

• Helps build your credit score

• Is scored highly by the FDIC.

• Has a low interest rate.

• Fits in your plan for financial fitness.

What is debt?

• Money you give to someone else.

• Money you earn.

• Money you have borrowed and must pay back.

• A form of interest, like debit.

Which type of account is used to store your money long term while earning a little interest?

• Savings

• Checking

• Debt

• Credit Card

Which type of account is kind of like a wallet in that it simply holds the money you spend on daily expenses.

• Savings

• Interest-bearing

• Checking

• Credit Card

A credit card is money you borrow and must pay back. A debit card uses your own money, and is just a more convenient payment method than carrying cash.

• True

• False

• Truth is lessened only by the falsehood within. Thus there is no answer which speaks my truth to this question.

Building savings into your monthly budget is important because it helps you to...

• Avoid unplanned (bad) debt

• Increase your independence

• Fare better when surprise expenses arise

• Earn a little interest

• Build a down payment for big expenses

A subsidized grant must be paid back, but the government will cover the interest while you are in college.

• True

• False

• Insert glorious prose here.