business semester review

a written cash flow plan is called a _____

budget

a ________ is a summary for income and spending over a period of time

cash flow statement

a copy of each written check is a ________

carbon check

people use the _______ to store cash designated for certain categories of a budget

envelope system

An item bought without planning or consideration is a ________

impulse purchase/buy

An ________ fee occurs when customer spends more money than is in their account

overdraft

what does it mean to reconcile your checkbook?

verifying that your internal financial records match your bank statement.

a cash flow plan that names or assigns every dollar earned is called a ______

zero-based budget

A _______ is an obligation of repayment owed by one party to another

liability

saving money over time for a large purchase is called a _______

sinking fund

method used to pay off smallest debt first then increasing payoffs on larger amounts is called

debt snowball method

“caveat emptor” means

buyer beware

when buying a car you should try an _______, in other words, ask for the lowest price

negotiation

feeling regret or shame after buying a large purchase is called _______

buyers remorse

what are 3 things millionaires DO?

1. Have a budget

2. save ahead for large expenses

3. investing

what are 3 things millionaires DON’T do?

1. thoughtless spending

2. use credit cards

3. soend a lot eating out

the 5 Dave Ramsey foundations

1. save a 500 emergency fund

2. get out of debt and stay out of debt

3. pay cash for your car

4. pay cash for college

5. build wealth and give

2 myths about money

1. “credit score means everything”

2. “You don't need insurance“

5 steps to get out of debt

1. save an emergency fund

2. lists debts smallest to largest

3. pay minimum on everything

4. attack the smallest debt

5. roll out all the payments

2 things you can do to save money when going to college

1. get a roomate

2. try to go to community colleges if you can

3. submit the FASFA form

why is financing a car a bad idea?

1. Because over time you are paying more money than the car originally cost.

2. You also lose the ability to invest and build more wealth over time since the monthly car payment is going to the bank instead of your bank account you could use to grow over time.