Money Management

Ethan is trying to understand the primary goal of money management. What should he focus on?

• To increase spending

• To manage current personal economic resources while working toward long-term financial security

• To avoid paying taxes

• To invest in high-risk stocks

Emma is trying to manage her finances effectively. Which of the following is NOT a component of money management?

• Budgeting

• Financial Statements

• Financial Documents

• Gambling

Nora is reviewing her finances. What does a personal balance sheet report?

• Monthly expenses

• What you own and what you owe

• Your credit score

• Your annual income

Zoe is considering her financial options. Which of the following is considered a liquid asset?

• Home

• Car

• Checking account balance

• Furniture

In a financial planning class, Zoe is learning about different types of liabilities. Which of the following is considered a long-term liability?

• Medical bills

• Charge account balances

• Mortgage

• Credit card balances

How is net worth calculated?

• Total assets minus total liabilities

• Total income minus total expenses

• Total liabilities minus total assets

• Total savings minus total debts

Which document should be kept for a longer time period?

• Credit card statements

• Receipts for furniture

• Automobile ownership documents

• Grocery receipts

Which of the following is an example of a current liability that Olivia might face after graduating?

• Mortgage

• Home improvement loan

• Student loan

• Medical bills

Which of the following is considered an asset for Abigail's financial planning?

• Monthly rent

• Automobile loan

• Interest on savings account

• Electric bill

Which of the following is a Liability?

• Collection of rare coins

• College savings account

• Mortgage amount

• Market value of automobile