11/28 Warm Up

What is budgeting for future expenses?

• The process of planning and allocating funds for past expenses.

• The process of planning and allocating funds for current expenses.

• The process of planning and allocating funds for unexpected expenses.

• The process of planning and allocating funds for anticipated expenses that will occur in the future.

What is one effective way to overcome impulse buying?

• Shop when you're hungry

• Buy everything you see

• Make a shopping list and stick to it

• Wait until the last minute to shop

How can you deal with unexpected expenses?

• Sell valuable possessions to cover the expenses

• Take out a high-interest loan

• Create an emergency fund and prioritize spending

• Ignore the expenses and hope they go away

What does it mean to live paycheck to paycheck?

• Relying on credit cards to cover basic expenses and accumulating debt.

• Having a steady income and saving a portion of each paycheck.

• Living comfortably and being able to afford luxury items.

• Relying on each paycheck to cover basic expenses and having little to no savings or financial cushion.

What is a potential consequence of excessive credit card spending?

• Bankruptcy

• Debt accumulation

• Poor credit score

• Financial instability

What is the first step to overcoming impulse buying?

• Create a budget

• Avoid shopping malls

• Ignore the triggers

• Identify and acknowledge the triggers

What is an effective strategy to deal with unexpected expenses?

• Sell valuable possessions to cover the expenses

• Borrow money from friends or family

• Have an emergency fund

• Ignore the expenses and hope they go away

1. When developing a savings plan, which is TRUE about saving and inflation?

• 1. In order to avoid losing purchasing power over time, the rate of return for savings accounts should be at least as high as the rate of inflation

• 1. In order to avoid losing purchasing power over time, the rate of return for savings accounts should be lower than the rate of inflation

• 1. To maximize saving, the rate of return for savings accounts should be exactly equal to the rate of inflation

• 1. There is no relationship between saving and inflation

2. What does it mean to live paycheck to paycheck?

• 1. Saving a portion of your paycheck for emergencies

• 1. Having multiple sources of income to cover expenses

• 1. Struggling to cover your financial needs with each paycheck

• 1. Enjoying a comfortable lifestyle without worrying about money

3. How can credit cards make it more challenging to save? 

• 1. Many banks will not let you open a savings account when you have a credit card

• 1. You will be charged a fee for every credit card transaction

• 1. Retailers mark up purchases if you use a credit card

• 1. Credit cards make it easier to spend money