Chapter 1 TEST-DR-Personal Finance

Making the right choices with your money—managing your money—involves knowing how

• A. Planning, saving, spending, and investing will define your financial portfolio

• To make bank deposits using registers with the appropriate transactions listed

• Consumer decisions will affect your accounts

• Consumer decisions will affect your accounts

What is The First Foundation?

• A. Pay cash for college. .

• B. Build wealth and give.

• C. Save a $500 emergency fund.

• D. Open a checking account.

Tell me 2 things about college/tech school LOANS that you should try to avoid:

(TRUE or FALSE) Avoiding debt can lead to financial freedom and hope.

• A. True

• B. False

What is NET WORTH

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What does living paycheck to paycheck mean?

• When a person chooses to not deposit their paycheck, they are living paycheck to paycheck.

• Living paycheck to paycheck is an expression used to explain the situation in which a person cannot plan past the next paycheck due to f inancial and budgeting difficulties caused by outside circumstances.

• Living paycheck to paycheck occurs when a person’s income is devoted to expenses which, in turn, means that little to no money is put in savings.

• Living paycheck to paycheck is an expression used to describe a situation when someone eagerly awaits their next paycheck to plan for the month’s expenses.

Using credit has not always been a socially accepted practice, but it has become . . .

• Necessary for life in America

• Less acceptable

• A practice used by the wealthy

• Normal in American culture

What are the 5 Foundations for Personal Finance?(please number as you list and DO NOT push ENTER to move to the NEXT line, just keep typing)**HINT you can upload a picture to answer!***

What did Dave Ramsey learn when he went bankrupt?(tell at least 2 things)

How are assets and liabilities connected to net worth?(explain in a complete sentence)