Morgan sets the following goal: Save $4,000 to buy a car. What is the problem with this goal?

• It is not specific enough; she needs to identify which specific car she wants to buy.

• It does not have a time frame; without a time-frame, she can't plan how to achieve the $4,000 goal because she could take 2 years, 10 years, or more to save the $4,000.

• It is not realistic; no one can save $4,000 to buy a car.

• It is not measurable, since the $4,000 might not actually buy the car she wants.

Saving for college, buying a home, and retirement are all

• short-term goals.

• intermediate goals.

• Long term goal

• Mr. Weir's worst nightmares

When should you set aside money for savings?

• You should set aside money for savings before you pay your other bills and expenses; PAY YOURSELF FIRST.

• Set aside money once you have paid all of your bills and expenses for the month, if you still have money left over.

• You only need to set aside money for savings if you actually have something specific you are saving money for.

• None of the above

How much should you have saved up in an Emergency Fund?

• One month's pay

• 3 - 6 months of expenses

• 2 months worth of rent or mortgage

• 3 months worth of what you normally budget for groceries

Which of the following is a FIXED expense?

• Groceries

• Dining out

• Clothing

• Car Insurance

What are the usual long-term consequences of continually having budget deficits?

• You will have difficulty transitioning from a job earning an hourly wage to a job earning a fixed salary.

• You are likely depleting (burning through) your savings, putting purchases on credit, or both.

• You will have to buy an older car when replacing your current car.

• Your retirement plan may not be able to earn as high of a rate of return as you would like.

In order for a bank or credit union to make money, it has to

• focus on receiving deposits, loaning out as little money as possible.

• collect more in interest and other finance charges on loans than it pays out in interest on deposits it receives.

• accept credit cards as payment for the items it sells.

• charge as little interest as possible for loans it makes, but pay as much as possible in interest on deposits it takes in.

The FDIC insures customer deposits for what maximum amount if the bank becomes insolvent?

• $100,000

• $250,000

• $500,000

• $1,000,000

When writing a check, you are NOT required to

• sign the check.

• write the date on the check.

• write who the check is to.

• write what the check is being used for.

You should review the transactions on your account either online or on your printed bank statement to

• ensure you have not become a victim of identity theft.

• ensure you have enough money every month available for savings.

• calculate your average minimum balance for the month.

• see if you can afford the monthly payment on a credit purchase.