8th Exploratory: Personal Finance - FINAL TEST REVIEW

Refers to all the money decisions a person or family must make in order to earn, budget, save, and spend money over time. These choices involve planning for emergencies and for the future.

• Personal finance

• Home finance

• Cash flow statement

• Financial aid

What is the 1st of the 5 FOUNDATIONS of personal finance?

• Cash for college

• Cash for first car

• $500 emergency fund

• Build wealth, Invest, & give

• Pay off all debts

  (get outta debt)

Personal finance is about _______ behavior and _______​ % head knowledge.

• 80% , 20%

• 100% , 0%

• 60% , 40%

• 70% , 30%

A liability can be described as:

• Something you own that has value

• Something that goes down in value over time

• Money that you have in a savings

  account

• Money you owe; a debt

A measurement of the total dollar value

of a person’s or business’ assets minus

liabilities is called:

What is the LAST of the 5 FOUNDATIONS of personal finance?

• Cash for college

• Cash for first car

• $500 emergency fund

• Build wealth, Invest, & give

• Pay off all debts

  (get outta debt)

Which of the following would be a

good reason to use money out of your

emergency fund?

• You broke a window at school. It was an accident, but you need to pay to replace it.

• You are at the store, and there is a pack of gum calling your name.

• The new Nintendo Switch game you have been looking forward to just got released for download.

• You forgot your snack, and there are some for sale in the vending machine. But, your mom is bringing your lunch later.

Having a budget for your money is a smart thing to start when you are in middle school.

• I agree

• I do not agree

Which of the following allows invested

money to grow over time?

• Taxes

• Simple Inflation

• Compound Interest

• Premium Payments

Which is better for building wealth in the long term,

Compound Interest or Simple interest

• compound interest

• Simple interest