Personal Finance/Budgeting

Which of the following is a benefit of having a personal savings plan?

• Personal savings plans let people spend more time doing activities they enjoy.

• People who save money are able to spend more money in the future and pay for unexpected expenses.

• People who save money are able to spend a lot of money right now.

• Personal savings plans help people have an unbalanced budget.

A balanced budget is when expenses are greater than income.

• True

• False

A balanced budget is when income is equal to or greater than expenses.

• True

• False

Which of the following is an example of income?

• Charging a lunch you will pay tomorrow

• Buying an ice cream at lunch today

• Money you get for working a job

• Trading supplies with a friend

The cost of borrowed money, usually expressed as a percentage.

• interest
• savings plan
• scarce
• purchase

401(k), IRA, and Roth IRA are all examples of a __________ account.

• Retirement
• College Savings
• Low Interest
• Stock

This term refers to the original amount of a loan OR the original amount of money invested. 

• Principal
• Interest
• Rebate
• Fixed Rate

This is an obligation of repayment, usually including principal plus interest; any time you owe someone money.

• compound interest
• emergency fund
• APR
• debt

The first step of financial freedom;
$500 for teens; $1,000 for adults

• mutual fund
• emergency fund
• sinking fund

Term that applies to the ability to buy something now and pay for it later over a period of time (usually with having to pay a finance charge and/or the addition of interest). 

• Savings
• Profit
• Budgeting
• Credit