Chapter 1 Personal Finance Review

When it comes to managing money, success is about ___% head knowledge and ___% behavior.

• 50, 50
• 80, 20
• 60, 40
• 20, 80

Americans typically maintain a very high savings rate. 

• True
• False

Which of the following statements best describes how Americans are being outsmarted by banks and other lenders?

• Credit is marketed so well that we desire to have it while completely dismissing the fact that interest rates and fees continue to destroy our financial well-being.

• We are taught that we can buy happiness.

• Buying things on credit has become acceptable in our culture.

• We are driven by consumerism.

When it comes to personal finance, the math is easy. Whatʹs challenging is managing your ________. 

• Income
• Friends
• Bank Account
• Behavior

Which of the following is not a benefit of understanding your own money personality? 

• Recognizing who you are allows you the opportunity to grow and learn. 
• Once you know your money personality, you can develop a financial plan that works for you. 
• Knowing your money personality allows you to excuse excessive spending because it is simply part of your nature. 

Person/organization that uses a product/service

• Consumer

• Loan

• Credit

• Financial Literacy

Knowledge to be an informed consumer and manage finances effectively

• Financial Literacy

• Personal Finance

Debt evidenced by a note; specifies the specific amount, interest rate, and date

• Debt

• Credit

• Loan

• Finances

Obligation of repayment owed by one party to another party.

• Finances

• Credit

• Loan

• Debt

Fee paid by a borrower to the lender for the use of borrowed money.

• Debt

• Loan

• Interest

• Fee