Unit 9 Study Guide

What is the term for the daily activity of handling economic resources and planning for future economic goals?

• money management

• fiscal responsibility

• financial planning

• figuring net worth

Dylan and Roberta want to teach their children about money management. What is the BEST way to help their children understand money?

• Dylan and Roberta should invest money for their children’s education.

• The children should manage their own weekly allowances.

• They should wait until the children are older than 16 to discuss money.

• The children should put all of their money in piggy banks and never spend it.

What is NOT one of the main components of money management?

• financial records

• personal financial statements

• tracking interest rates

• budgeting

What is TRUE about the three main components of money management?

• Financial records are not always required when managing money.

• Budgeting involves figuring out your personal net worth.

• Filing taxes is the most important component.

• Each of the components is connected and builds off of the others.

Which of the main components of money management provides the basis of money management?

• financial records

• personal financial statements

• budgeting

• personal net worth

Which of the main components of money management includes cash flow statements of income and expenses?

• financial records

• personal financial statements

• budgeting

• filing taxes

Which of the main components of money management involves creating a plan for spending and saving during particular time periods, such as a year, month, or week?

• financial records

• personal financial statements

• budgeting

• filing taxes

Cali wants to work on improving her money management skills. To start, she needs to gather financial records. What type of financial record would MOST help her begin this process?

• the title to her car

• the bank’s latest interest rates

• her driver’s license

• her yearly tax forms

Rashad doesn’t want to spend time organizing his personal financial records. His spouse, Minos, thinks it is worth spending the time to get organized. What should Minos tell Rashad to convince him that organizing personal financial records is beneficial?

• It will be easier to manage daily business activities such as paying bills.

• People who organize their personal financial records generally do not have to file taxes.

• They cannot lose money on investments as long as they keep good records.

• Most banks offer a yearly cash bonus if clients have organized financial records.

Elizabeth and Niko are very organized and do an excellent job organizing their personal financial records. How will this BEST help them when they file their taxes?

• If they have organized records, they won’t likely have to file taxes.

• This can help them maximize their deductions.

• Their tax return will definitely not be audited.

• They are guaranteed to get a tax refund instead of owing taxes.