Chapter 1- Money Matters

Question 1

401K retirement plan

Answer 1

money set aside to be used after you retire

Question 2

80-10-10 Rule

Answer 2

live on 80% and save 10%, give away 10%

Question 3

90-10 Rule

Answer 3

Live on 90%, save 10%

Question 4

Dollar Cost Averaging

Answer 4

investing a fixed dollar amount of irregular intervals

Question 5

Downshifting

Answer 5

giving up work time and or money for a better quality of life

Question 6

Enough

Answer 6

more spending doesn’t mean happiness anymore

Question 7

Financial Independence

Answer 7

the ability to support yourself financially

Question 8

Financial Life Stages

Answer 8

financial situations that people experience in their life

Question 9

Financial Literacy

Answer 9

ability to understand finances

Question 10

Financial Plan

Answer 10

goal-based spending

Question 11

Frugal

Answer 11

avoiding wasting money (goodwill shoppers)

Question 12

Intermediate Goal

Answer 12

goal achieved in 1-5 years

Question 13

Long-term Goal

Answer 13

goal achieved in more than 5 years

Question 14

Money Personality

Answer 14

Style and habits of money management

Question 15

Non-Earned Income

Answer 15

Income from investments

Question 16

Passive Income

Answer 16

income from investments AND savings

Question 17

Personal Financial Plan

Answer 17

a plan to improve your financial standing

Question 18

Personal Financial Success

Answer 18

achieving your goals

Question 19

Personal Mission Statement

Answer 19

formal statement that reflects one’s strengths, passions, gifts and stalks

Question 20

Personal Values

Answer 20

what it means

Question 21

Short-term Goal

Answer 21

goal achieved in less than 1 year

Question 22

SMART Goal

Answer 22

Specific
Measurable
Attainable
Realistic
Time-Bound (specific dates)

Question 23

Voluntary Simplicity

Answer 23

choosing the simple life