Personal Finance Chapter 1

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

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

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

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

• consumer decisions will affect your accounts

Banks got into the credit business before 1920 because charging exceptionally high interest rates was legal.

• True

• False

You should always make sure you have a...

• Budget

• Direct Deposit

• Credit Line

• Credit Card

To gain understanding of your personal finances, you should know...

• your financial goals

• how much income you have

• your investments portfolio and financial advisor's contact information

• where you stand financially, how much income you have, what goals you want to set, and how you'll reach these goals.

What is the First Foundation?

• Pay cash for college

• Open a checking account

• save a $500 emergency fund

• build wealth and give

Being a spender has many more positives than being a saver

• True

• False

Personal finance is all the financial decisions a(n) ______ must make in order to earn, budget, save, spend, and give money over time.

• Individual or family

• company or organization

• individual or company

• bank

Avoiding debt can lead to financial freedom and hope.

• True

• False

After World War 1, the demand for products increased, and people began getting credit without loan sharks. Because of this, credit...

• started to become more socially acceptable

• increased so rapidly, loan sharks became obsolete

• was offered at even higher interest rates than loan sharks

• was devalued in the marketplace

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

• exactly 20% below what

• more than

• less than

• the same as