Chapter 7 Flashcards
Meaning money is active
Active
You must have money in the bank in order to use both of these cards
ATM Card
debit card
Another name for cash flow plan
Budget
Duplicate checks
Carbon checks
A system of money
Currency
Being determined to save money
Discipline
Envelopes used to divide money into certain categories such as food or clothes so one does not overspend in one category
Envelope system
Unsystematic collecting
Hoarding
Refusing to give up
Persistent
To buy an item without thinking about it
Impulse purchase
Taking action yourself rather than waiting for something to happen
Pro active
To put off until later
Procrastinates
Process used to determine if the balance in your checking registry matches the balance report it on the bank statement
Reconcile
When the total of income minus the total of expenses equals zero
Zero based budget
Form used to do a budget
Monthly cash flow form
Form used by persons earning an inconsistent monthly income
Irregular income form
Helps people who forget to record checks in the register after writing them
Duplicate checks
You need to do a zero based budget T/F
True
You will pay interest on debit card purchases T/F
False
A budget will be the same each and every month T/f
False
You need to reconcile your bank statement within 72 hours of receiving it T/F
True
People who don’t earn a consistent salary monthly, do not have to do a budget T/F
False
Bounced checks are a sign of _____ living
Crisis
A written budget should be done every____
Month
Your monthly budget should include….
Fixed expenses
variable expenses
money to blow
What would account for a difference in balances in your checkbook registry and bank statement after reconciling the two
An error
Check that didn’t clear
Deposits that did not post
Doing a budget does not lead to….
An increase in arguments
Explain how to complete a zero based budget
Write down the money that should be spent that month and it should equal zero
What are some reasons by the balance in your checkbook registry might not match the balance on your bank statement
You may have made a mistake in recording
Why do you need a written budget even when you know you can afford your expenses
You may overspend without a budget
How does a budget different when you have an a regular income versus a predictable income
You should prioritize by importance on the budget
How can I budget help you when you are working on baby step 2
Money to pay off certain debts
