Personal Finance Final Exam

Key components of financial planning include all of the following except:

• Write out a detailed plan for accomplishing goals

• Replace money myths with money truths

• Allow your financial planner to make all your major money decisions

• Regularly monitor and reassess your financial plan

Personal Finance success is primarily the result of:

• Managing your money behavior

• Winning the lottery

• Generous welfare and unemployment programs

• Inheriting money from your parents

Which of the following is a consequence of spending more than you make?

• Missed opportunity to save and invest

• A cycle of debt

• Stress

• All of these

When it comes to managing money, success is ____% knowledge and ____% behavior.

• 50, 50

• 60, 40

• 80, 20

• 20, 80

Which of the following is NOT a factor in becoming money smart?

• Have knowledge of basic math

• Learn the language of money

• Manage your behavior with money

• Learn how to read your credit care statements

When it comes to personal finance, the math is easy. What's challenging is managing your what?

• Income

• Friends

• Bank account

• Behavior

Since you are a teenager, what you do now with money will have little effect on your financial future

• True

• False

Expensive houses and new cars are a true indication of wealth.

• True

• False

Which of the following steps is the First Foundation?

• Get out of debt

• Build wealth and give

• Save a $500 emergency fund

• Pay cash for your car

What does it mean to have a negative savings rate?

• Saving for something that is a want instead of a need

• Having a fully funded emergency fund

• Having no saving at all

• Spending more money than you make and acquiring debt