Personal Finance Exam Review

Managing your money involves knowing how __________ affect your money.

Earning, budgeting, saving, spending, & giving.

What is the First Foundation?

Save a $500 emergency fund.

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, & how you’ll reach those goals.

How often should you create a budget?

Monthly.

The Four Walls include __________.

Food, utilities, shelter, & transportation.

It is __________ that the majority of Americans live paycheck to paycheck.

True.

What does a budget show you?

How much money you plan to come in & go out during the month.

Why do stores like mobile pay apps?

It makes paying easier & faster, so customers are more likely to overspend.

A bank can help you ________ your money & keep it ________.

Manage; safe.

The tax on the purchase of goods or services is called __________.

Consumption tax.

What is the cure for selfishness?

Generosity.

Your rent payment should total no more than ________ % of your take-home pay.

Why is digital ad spending projected to be $524 billion in 2024?

Marketers know that you're on your mobile device more than you're reading newspaper ads or listening to live radio ads.

If you really want to save money, you've got to __________.

Live on less than you make.

What does it mean to develop power over purchase?

You are able to slow down & think through your motives before buying something.

Life insurance guarantees your loved ones get a certain amount of money when you __________.

Pass away.

What is the Fifth Foundation?

Build wealth & give.

An example of discretionary spending is __________.

Nonessential goods & services.

Why do some accounts earn interest?

Because the bank pays you to use your money.

When you finance a new car, you will end up paying __________ than the sticker price.

More.

Every American who earns an income must file a __________ each year.

Federal tax return.

It is __________ that you should rent until you are able to buy a home the right way.

True.

What does cost of living refer to?

The average cost of the basic goods & services needed to maintain a certain standard of living.

When you buy clothes or check out at the grocery store, you will pay __________.

Sales tax.

Before you invest, you should make sure a mutual fund has done well for __________ years.

5-10.