Personal Finance Review

Adele needs to plan for a large-scale purchase. What is her BEST option?

• Put money into a savings account

• Use a credit card

• Take out a loan

• Ask a family member for a loan

Money you earn through work

• Taxes

• Interest

• Income

• Credit Card

A budget is... (select all that apply)

• Your credit card bill at the end of the month.

• An estimate of income/expenses (spending) for a set period of time.

• The price of your insurance for the year.

• A tool to help manage your money.

Why is creating a budget so important? (Select all that apply)

• It can help you reach your savings goals for what you want or need.

• It can help you make better financial decisions.

• It can help you see your spending habits so you can adjust them to what you want or need.

• It can help you keep track of your neighbor's financial habits.

• It can help you get a better job.

Darin wants to plan for his future. What is the BEST advice to give him for how to manage his monthly paycheck?

• Buy everything you want whenever you want to

• Invest it all now

• Pay your debts/expenses and invest some for the future

• Spend it all now

When the bank charges interest on a loan we borrow, we must...

• Pay more money than we borrowed from the bank

• Pay less money than we borrowed from the bank

A plan of your expected income and how you will use it to meet your expected expenses over a period of time

• Plan

• Budget

• Statement

• Income

Which word of phrase should be at the top of the left column of this budget?

• Cash flow

• Fixed costs

• Income

• Savings

People keep a personal budget to help them

• set and reach financial goals.

• earn promotions at work.

• buy with credit.

• buy anything they want.

There are many reasons why you should save money for a future purchase. Which is NOT a reason to save up for a future purchase?

• You can avoid taking out a loan.

• You can finance the purchase at a lower interest rate

• You will not have to use high interest credit cards

• You will not have to make changes to your monthly budget