WorksheetsECON - FPF Chapter 1
Total questions: 30
Worksheet time: 25mins
Being a spender has many more positives than being a saver
TRUE
FALSE
What is The First Foundation?
Pay cash for college
Build wealth and give
Save $500 emergency fund
Open a checking account
To gain an understanding of your personal finances, you should know...
where you stand financially, how much income you have, what goals you want to set, and how you'll reach your goals
Your investment portfolio and your financial advisors contact info
Your financial goal
How much income you have
You should always make sure you have a....
Budget
Credit Line
Direct Deposit
Credit Card
Banks got into the credit business before 1920 because charging exceptionally high interest rates was legal
TRUE
FALSE
Making the right choices with your money - managing your money - involves knowing how...
Consumer decisions will affect your accounts
Planning, saving, spending, and investing will define your financial portfolio
To make bank deposits using registers with the appropriate transactions listed
Earning, budgeting, saving, spending, and giving affect your money
After WWI, the demand for products increased, and people began getting credit without loan sharks. Because of this, credit...
Started to become more socially acceptable
Increased so rapidly, loan sharks became obsolete
Was devalued in the marketplace
Was offered at even higher interest rates by loan sharks
What is financial literacy?
The skills to read financial documents for personal finance classes, goals, and statements
The knowledge and skill based necessary for people to be informed consumers and manage their finances effectively
The content provided in bank statements for consumers
The curriculum provided to college students about finances for their degree
Personal finances is all the financial decisions an _____ must make in order to earn, budget, save, spend, and give money over time.
Individual or Family
Company or organization
individual or company
bank
Savers have a tendency to be...
strict with purchases for only themselves
strict with what they spend their money on, other than groceries
strict with their purchases but spend money without a plan
strict with their money and not spend any of it
A money principle to keep in mind is to live on ______ you make
exactly 20% below what
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
What are The Five Foundations?
a personal financial action plan
a financial literacy technique
a common conclusion for debt
a starting point for adults regarding finances
If your assets total more than your liabilities, you will have a(n)_____ net worth
unknown
equal
positive
negative
What is the best way to avoid running out of money too quickly?
you can make it a habit to plan and set goals for your money
you can avoid making any purchases for the next 30 days
you can put your money in a safe place, like a bank, and not spend it
you can invest in college
Your money personally impacts...
How you handle money
your financial literacy level
what you plan for as an adult
your understanding of bank transactions
An important money principle to consider is that you should ____ and ____ your money
save; invest
invest; lay out
invest; endow
spend; invest
Franklin D. Roosevelt passes the New Deal because of the Great Depression in the 1930s. What was the purpose of this program?
to promote economic recovery and social reform
to create a borrowing system within the country
to alleviate financial concerns with the United Nations
to divide the national budget in half and distribute it
Without any debt, you can be outrageously ____
cautious
generous
selfish
thrifty
When you set financial goals, they should be...
Specific, measurable, time-sensitive, yours, and written
only time-sensitive
timely, bank-based, specific, and yours
specific and measurable
What does living paycheck to paycheck mean?
living paycheck to paycheck occurs when a persons income is devoted to expenses, which means that little to no money is put in savings
when a person chooses to not deposit their paychecks
living paycheck to paycheck is an expression used to describe a situation when someone eagerly awaits their next paycheck to plan for the month's expenses
living paycheck to paycheck is an expression used to explain the situation in which a person cannot plan past the next paycheck due to financial and budgeting difficulties caused by outside circumstances
As a single adult, you should...
never seek financial advice from others
keep managing your money as a priority
beware of planned and budget buying
seek a financial counselor or advise by age 25
in 1`972, what association made borrowing money to attend college much easier than it had been?
The Student Loan Marketing Association (SLMA)
The Student Loan Approval Association (SLAA)
The Federal Student Approval Association (FSAA)
The Student Federal Funding Association (SFFA)
It is possible to pay for college with cash
TRUE
FALSE
You are either only a natural saver or a natural spender. You cannot have a balance of both
TRUE
FALSE
What is The Fifth Foundation?
pay cash for your car
get out and stay out of debt
find a financial professional
build wealth and give
A ____ financial goal takes up to two years to reach
five-level
short-term
medium-term
long-term
Avoiding debt can lead to financial peace and hope for the future
TRUE
FALSE
Using credit has not always been a socially accepted practices, but it has become...
normal in American culture
a practice used by the wealthy
less acceptable
necessary for life in America
Personal finances is 20% _____and 80%______
head knowledge; behavior
behavior; head knowledge
cause; effect
reaction; behaviors
