D.R.F.P.F. Ch. 11 Lesson 1

What does "cost of living" refer to?

• a. The cost of maintaining a standard of living

• b. The cost of maintaining a high standard of living

• B) The cost of luxury items needed to maintain a certain standard of living

• d. The cost of maintaining a luxurious standard of living

What is the definition of "standard of living"?

• A) The level of wealth, comfort, material goods, and necessities available to a group of people

• B) The level of luxury goods and services available to a group of people

• C) The level of basic necessities available to a group of people

• D) The level of education and professional success achieved by a group of people

What does "house poor" mean?

• A) When someone spends too much money on luxury goods

• B) When someone spends too much money on housing costs and struggles to reach other financial goals

• C) When someone spends too little money on housing costs and struggles to maintain a certain standard of living

• D) When someone spends too little money on basic necessities

Why is it important to factor in the cost of living when living on your own?

• A) You'll be responsible for paying for all the things you need out of your own income

• B) Your parents will pay for and provide most of the things you need

• C) You won't have any financial responsibilities when living on your own

• D) You'll have more money to spend on luxury items when living on your own

What are some of the basic goods and services included in the cost of living?

• A) Housing, food, clothing, and other necessary expenses

• B) Luxury items, entertainment, and travel

• C) Education, healthcare, and professional development

• D) Investments, savings, and retirement planning

What are some of the expenses you'll have to pay for if you choose to live off-campus in college?

• B) Transportation expenses, entertainment, and travel

• C) Tuition, textbooks, and school supplies

• A) Rent, utilities, furniture, and grocery shopping

• D) Clothing, personal care items, and luxury goods

What are some transportation expenses you might have to pay for when living on your own?

• B) Taxi, Uber, and bus fares

• A) Gas, insurance, and maintenance

• C) Luxury car payments and maintenance

• D) Personal driver and fuel expenses

What money principles should you follow when living on your own?

• Spend, never have a budget, use credit cards for everything, live beyond your means, and be selfish

• Save some, have a loose budget, take on some debt, live paycheck to paycheck, and be somewhat generous

• Save, always have a budget, stay out of debt, live on less than you make, and be generous

• Save a little, don't worry too much about a budget, take on a lot of debt, live for today, and don't worry about being generous

What does the term "renting" mean?

• A. Owning a home

• B. Paying for a temporary stay in someone else's property

• C. Buying a new house

• D. None of the above

What does the term "homeownership" mean?

• A. Paying rent for a temporary stay

• B. Owning a home

• C. Purchasing a new house

• D. None of the above