Understanding Personal Finance

What is personal finance?

• managing your money wisely

• managing your money poorly

• living paycheck to paycheck

• investing in stocks

Which type of account earns interest?

• Checking

• Savings

A plan to track your money is called...

• a credit report

• a budget

• a checkbook

• an investment plan

Choose 2 reasons you would take out a loan.

• buy groceries

• college tuition

• to buy lunch for Mrs. Elswick

• purchase a car

The ability to borrow money based on promise to repay is called

• investments

• real estate

• a loan

• credit

How do you maintain good credit?

• having a checking and a savings account

• taking out a loan

• paying bills on time

• reading your credit history

Choose the 3 types of investments

• stocks

• bonds

• real estate

• checking

Borrowing money you promise to pay back

• a loan

• an investment

• wants

• needs

Which 2 of these are wants?

• buying a new Stanley when you already have 4

• a week's worth of groceries

• purchasing new tires for your car

• buying tickets to the Iron Bowl

The goal of investing is to

• track how you spend your money

• increase the value of your money over time.

• record how you manage money and repay loans

• adjust your spending to match income