Chapter 23: Spending Your Money Wisely

What does a present-oriented spending style emphasize?

• Buying what is needed later

• Extensive financial planning

• Buying what is wanted sooner

• Avoiding debt at all costs

What expenses do adults usually take care of?

• Only leisure costs

• Housing, food, medical care, and maybe some clothing and leisure costs

• Only clothing

• Only medical care

What is a benefit of having a checking account?

• Your money is always inaccessible.

• Your money is safe and ready to use.

• You cannot deposit money.

• You cannot withdraw money.

Where do you deposit money when you have a checking account?

• Under your mattress.

• In a financial institution.

• In a piggy bank.

• With a friend.

Who is responsible for paying the fees associated with a bounced check?

• The bank

• The check writer

• The recipient of the check

• The government

What can you buy using credit?

• Only groceries

• Only clothes

• Larger purchases like houses and cars

• Only electronics

What is a credit card limit?

• The minimum amount you can spend.

• The maximum credit you can have with the card.

• The average amount you can spend monthly.

• The total amount of interest charged.

What is a potential consequence of not paying the full amount due on a credit card?

• Increased credit limit.

• Interest charges.

• Reward points.

• Lower interest rates.

What is a common practice for credit card companies when a card is lost or stolen?

• They immediately cancel the card.

• They take steps to prevent unauthorized use.

• They charge a replacement fee.

• They offer a reward for recovery.

Why is it important to understand the contract in installment buying?

• To make better decisions

• To avoid paying any interest

• To get a refund easily

• To change the terms later