Personal Finance FINAL Spring 25 (F23)

What is The First Foundation?

• Pay cash for college.
• Build wealth and give.
• Save a $500 emergency fund.
• Open a checking account.

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

• Individual
• Company
• Organization
• School

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

• Exactly 20% Below
• More Than
• Less Than
• The Same As

To know your net worth, subtract your liabilities from your __________________ .

• Other Liabilities
• Net Income
• Previous Net Worth
• Assets

If your assets total more than your liabilities, you will have a(n) __________________ net worth.

• Negative
• Equal
• Positive
• Unknown

Personal finance is 20% ______________ and 80% ________________:

• Head Knowledge; Behavior
• Behavior; Head Knowledge
• Cause; Effect
• Reactions; Behaviors

To gain an understanding of your personal finances, you should know:

• Your financial goals.
• Where you stand financially, how much income you have, what goals you want to set, and how you’ll reach those goals
• How much income you have.
• Your investment portfolio and your financial advisors’ contact information.

What are the Four Walls?

• Utilities, college fund, restaurants, and car insurance
• Cell phone bill, car insurance, shelter, and money for the movies
• Food, utilities, transportation, and college fund
• Food, utilities, shelter, and transportation

How often should you create a budget?

• Daily
• Weekly
• Monthly
• Biannually

A common misconception is that budgeting will keep you from having fun, when in reality a budget :

• Gives you permission to spend
• Restricts your fun completely
• Means there are no rules—you are free to use your money however you want
• Adds more stress to your life