Mid Unit Remediation

Why is income important in personal financial management?

• It is the ending point and determines expenses a person must pay.
• It is the starting point and determines what is left over after savings.
• It is the ending point and determines how much earning potential a person has.
• It is the starting point and determines how much a person has available to spend.

What is a budget?

• a legal argreement with a bank
• a loan for a home
• a plan for spending and saving money
• an instructional guide for financial investments

A person's __________ is how much money they have coming in.

• Income
• Expenditures
• Savings
• Debt

The amount of money a person spends each month is known as their __________.

• Income
• Expenditures
• Savings
• Debt

Why is income the starting point of personal financial management?

• People need income to start their own businesses.
• People need income to increase their salary or wages.
• People need income to evaluate their earning potential.
• People need income to buy the things they want and need.

If a person has ______________ they will have less stress and a sense of financial security.

• Income
• Expenditures
• Savings
• Debt

Which statements accurately describe the reasons for and benefits of a budget?

• It helps people increase their earning potential.
• It helps people track their income and expenditures and save money which provides flexibility and financial security.
• It helps people borrow money.

What are reasons for savings?

• To help you plan for retirement and to cover emergency expenses.
• To increase the use of credit.
• To reduce monthly income.
• To gain additional debt.

What are the risks of debt?

• Unexpected purchases could reduce the usefulness of the debt.
• A person's credit rating could increase if the debt is not paid on time.
• A person could lose the item associated with the debt, such as a house.

Which body of water borders Georgia?

• Pacific Ocean
• Atlantic Ocean
• Indian Ocean
• Artic Ocean