WorksheetsPersonal Finance Final Study Guide
Total questions: 35
Worksheet time: 18mins
You should always have a.....
Budget
Credit Line
Direct Deposit
Credit Card
What is the First Foundation?
Pay Cash for College
Build Wealth and Give
Save a $500 Emergency Fund
Open a Checking Account
A money principal to keep in mind is to live on ____________ you make.
Exactly 20% below
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
Is it possible to pay for college with cash?
True
False
When you set financial goals, they should be...
Timely, bank based, specific, and yours
Specific, measurable, time sensitive, yours, and written
Specific and Measurable
Only time sensitive
Personal Finance is 20% ____________ and 80% ______________ .
Head knowledge / Behavior
Behavior / Head Knowledge
Cause / Effect
Reactions / Behaviors
Without debt you can be outrageously __________________.
Selfish
Generous
Cautious
Thrifty
Most American think that budgeting is important, hoever, only about __________ of Americans actually use a budget.
75%
50%
23%
35%
What are the "Four Walls" of a good budget?
Utilities, College Fund, Restaurants, and Car Insurance
Cell Phone Bill, Car Insurance, Shelter, and Money for Movies
Food, Utilities, Transportation, and College Fund
Food, Utilities, Shelter, and Transportation
How often should you create a budget?
Daily
Weekly
Monthly
Biannually
Going to the movies is an example of what types of expenses?
Intermittent and Variable
Discretionary and Variable
Discretionary and Fixed
Intermittent and Fixed
What is the envelope system?
A method of budgeting that uses envelopes labeled with specific budget categories for your cash
A systematic approach to budgeting with a digital app that organizes categories based on qualitative amounts.
A way to budget that involves putting a credit card in each envelope to use for that category
It is a system that involves writing your entire budget on an envelope
The first step you should take when you want to make a large purchase is…
Ask your parents to loan you the money with low interest
Get a new credit card
Decide how much you will need to save and the time frame you want to save it in
Sell something and use the proceeds
If you want to save money you must...
Fly Economy Class
Live on less than you make
Invest in a Roth IRA
Have a financial advisor
What two habits are the most important for building wealth and becoming a millionaire?
Working a high paying job and relying on a trust fund
Always paying off your credit card on time and putting extra money into a retirement account
Investing into the right stocks and using a private CPA
Consistently investing money and patience to give it time to grow
What is a billionaires best friend?
Accrued Interest
Compound Growth
High Returns
Profit Sharing
The purpose of and emergency fund is to...
Be able to cover an unexpected expense with cash and protect you form having to pile up debt when something goes wrong
Teach you how to invest in growth stock mutual funds
Have some extra money in a checking account in case you need to transfer some to your spending categories
Teach you discipline-saving is purely a good exercise in self control
In order to outpace inflation when investing, your investments need to have a lower rate of return the rate of inflation.
True
False
Which of the following would be a legitimate reason to use your emergency fund?
Your forgot to budget for your mom's birthday gift
You have a fancy event coming up but you already spent all of your clothing budget
The smartphone you have wanted just went on sale
Your car battery died
Credit Card companies make the most profit from...
Incentive programs with banks
Partnering with companies to offer rewards to customers
Government tax breaks
Charging interest to customers who only pay part of their monthly debt
What is an example of an appreciating asset?
A computer used for business purposes
A new car purchased within the past 6 months
A piece of farming equipment
A home
The debt snowball method involves...
Waiting until the winter to pay of debt
Paying off debts from largest to smallest
Pooling together money from other people to pay off your debt
Paying off debts from smallest to largest
The smartest way to buy a car is to...
Lease it
Finance it but pay the debt as quickly as you can
Take out a personal loan for it
Pay for it with Cash
The __________ is the total amount of the car loan, plus the taxes and fees.
Principal
Value
Interest
Term
Why do stores like scan and go option, apps, and on click purchases?
Its harder for customers to pay, so they end up saving money
It makes paying easier and faster, so customers are more likely to overspend
Digital pay is the way of the future, and retail stores like being ahead of the times
It is easier for the retail store clerks
Companies use marketing to get your prefrontal cortex offline so you will be vulnerable to impulse buying.
True
False
The key to contentment is gratitude.
True
False
Why does brand recognition help business?
It makes their name and logo easily memorable for consumers
It helps the business recognize their own logo
It keeps the consumer from buying more of their product or service
It helps them partner with other businesses
Creating a budget, having clear money goals, and slowing down to think through purchases are all practice of a ____________.
College student
Wise consumer
Foolish Consumer
Consumerism
The first step to finding your dream job is...
Interviewing
Discovering your talents, passions, and values
Dreaming about it
Applying
Your resume should not include...
Your past job experiences
Professional references
How much you want to make
Your Education
Which of the following is not a characteristic of an entrepreneur?
Risk taker
One dimensional
Courageous
Visionary
The National Study of Millionaires revealed that millionaires are more likely to...
Watch 10 hours of T.V a week
Have an account with at least three social media platforms
Read one nonfiction book each month
Get up by 5 am each morning
Mentors are people who can guide, encourage, and hold you accountable as you make the climb to your dream job or profession.
True
False
