Foundations in Personal Finance - Final Review

Making the right choices with your money—managing your money—involves knowing how . . .

• Planning, spending, and investing will define your financial portfolio

• To make bank deposits using registers with the appropriate transactions listed

• Consumer decisions will affect your accounts

• Earning, budgeting, saving, spending, and giving affect your money

Although most Americans think budgeting is important, about______ of Americans actually use a budget.?

• 75%

• 23%

• 35%

• 50%

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

• 50, 50

• 60, 40

• 20, 80

• 80, 20

A money principle to keep in mind is to live on _______ you make

• Less than

• The same as

• More than

• Exactly 20% below what

If your assets total more than your liabilities, you will have a(n) ______ net worth:

• Negative

• Positive

• Equal

• Valuable

The zero-based budget is the best method of budgeting because:

• It is less complicated than other types of budgets

• It allows less money for wants

• Sticking to the budget requires less discipline

• It ensures that every dollar you make is assigned a specific purpose

What are the Four Walls?

• Utilities, college fund, restaurants, and car insurance

• Cell phone bill, car insurance, shelter, and money for the movies

• Food, utilities, transportation, and college fund

• Food, utilities, shelter, and transportation

How often should you create a budget?

• Daily

• Weekly

• Monthly

• Annually

Instead of borrowing money for large purchases, you should set money aside in a(n) _____________ over time and pay with cash.

• Emergency Fund

• Sinking Fund

• Credit Card Fund

• Mortgage Fund

Which of the following is not a recommended step in the Drive Free method of purchasing a car?

• Plan your purchase in advance using the sinking fund method of saving.

• Explore new car dealerships for the best interest rate.

• Start with an inexpensive car & gradually move up in car value as save

• Place your savings in a mutual fund so your money can make more money.