Personal Money Management

___________ is the starting point for a budget.

• Debt

• Income

• Expenditures

• Credit

Julia earns an hourly wage for working at a clothing store. This is an example of

• Income

• Expenditures

• Debt

• Credit

Ben makes $50 each month, but spends $40 of it. Lindsey makes $65 each month, but spends $60. Which one of them would be able to save enough for a large purchase first?

• Ben

• Lindsey

Which of the following are benefits of saving money? (Select 3)

• to build wealth

• to pursue opportunities

• to limit expenses

• to plan for retirement

• to monitor financial resources

Which of the following would be a benefit of saving money?

• to qualify for a new credit card

• to be prepared for an emergency

• to have fewer job opportunities

• to have to decline credit card offers

Which of the following is a risk of debt? (select 2)

• losing your job and not being able to pay back the debt

• borrowing money to take a vacation

• paying back a loan too quickly

• not saving at least 5% of your income

• being unable to save for emergencies

Which is considered "good" debt?

• using a credit card to pay for an extended vacation

• getting a loan from a bank to buy a new sports car

• using a credit card to buy the latest personal electronics

• getting a loan from a mortgage company to purchase a home

Which phrase describes a significant risk of mishandling credit?

• paying more sales tax

• paying higher interest rates

• receiving higher credit scores

• receiving more credit card offers

In which situation does credit become debt?

• a buyer purchases furniture on credit, and then owes a debt to the furniture store

• an electronics store extends credit to a buyer, then owes a debt to the buyer

• a mechanic exchanges services with a plumber, and incurs a debt to the plumber

• a framer purchases used equipment in exchange for a share of the crops grown

Which is a benefit of creating a personal budget?

• in can decrease your savings

• it can increase your spending

• it can help you make more money

• it can help you use money more wisely