Personal Finance S1 A

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 or family

• Company or organization

• Individual or company

• Bank

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

• Exactly 20% below what

• More than

• The same as

• Less than

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

• Other liabilities

• Net income

• Previous net worth

• Assets

What is financial literacy?

• The content provided in bank statements for consumers

• The knowledge and skill base necessary for people to be informed consumers and manage their finances effectively

• The curriculum provided to college students about finances for their degrees

• The skills to read financial documents for personal finance classes, goals, and statements

Savers have a tendency to be . . .

• Strict with their purchases but spend money without a plan

• Strict with only purchases for themselves

• Strict with what they spend their money on, other than groceries

• Strict with their money and not spend any of it

It is possible to pay for college with cash.

• True

• False

An important money principle to consider is that you should ____ and ____ your money.

What are The Five Foundations?

• A personal financial action plan

• A starting point for adults regarding finances

• A financial literacy technique

• A common conclusion for debt

Personal finance is 20% ____ and 80% ____.