Ch 2.2 Classwork

Which of the following is an accurate financial statistic about millennials?

• Less than half of millennials spend money on clothing they don't necessarily need.

• The majority of millennials spend money on taxis and Ubers.

• About 30% of millennials spend money on eating at trendy restaurants.

• About half of millennials spend money on the latest electronic gadget.

The purpose of a budget is to plan your spending and saving, considering your income level, so that you can meet your ________.

• needs and wants

• immediate needs only

• intermediate-term financial goals

• long-term dreams only

Which of the following is NOT a step in creating a budget?

• considering the effect of taxes

• prioritizing your financial goals

• identifying your expenses

• determining your net worth

Which of the following questions would you answer while establishing your net worth in the budgeting process?

• How much income can I expect each month?

• How much money do I usually spend in a month?

• How much money do I have in the bank now?

• How can I decrease the amount of income tax I owe?

You can increase your net worth by increasing your ________ and/or decreasing your ________.

• assets; liabilities

• liabilities; equities

• assets; equities

• equities; assets

Which of the following is not a source of income?

• Allowance

• Car payments

• Wages

• Salary

The most common investments include __________.

• rare automobiles

• oil paintings

• stocks and bonds

• stamp collections

Good record keeping is important for __________.

• calculating net worth

• estate planning

• tax purposes

• young children

In general, the higher the risk of a particular investment the higher the potential __________.

• record keeping

• return

• debt

• liquidity