Chapter 9 Flashcards
Money
According to the author, the only time to ask for more money at work is when you are first hired. T or F
False
The main point of the Power Process: “Risk being a fool,” is that mastery in most activities calls for the willingness to do something new, to fail, to make corrections, and to fail again, and so on. T or F
True
The author suggests that the way you handle money is a clue about your values. An example of this is the amount of money that you spend on clothes shows how much you value your appearance. T or F
True
It is never too early to start planning for your retirement T or F
True
It is never too early to start planning for your retirement
T or F
True
Ending money worries can include
Doing both answer choices *****
Increasing your income
Decreasing your expenses
Cooking for yourself instead of eating out significantly lower your expenses. T or F
True
Strategies for using credit cards effectively do NOT include
All of the answer choices
using several credit cards so that you can spread around your unpaid balances ****
avoiding cash advances
paying off the full balance due each month
choosing cards with no annual fees and lower interest rates.
The strategies for protecting your credit score do NOT include
using your credit cards as sources of cash *****
paying off the entire balance on your credit cards each month.
avoiding applying for more credit cards
paying all your bills on time.
Research indicates that higher education is associated with
Higher levels of volunteer work a greater likelihood of being employed higher income higher job satisfaction all of the above choices ******
One strategy for money management is to take a percentage of every paycheck and deposit that amount into savings account. The suggestion in the text is to start by saving.
5 to 10 percent of your paycheck ****
15 to 20 percent of your paycheck
25 to 30 percent of your paycheck
1 to 3 percent of your paycheck
The main steps for money management suggested in this chapter include
commit to live within your means by spending less than you earn (intention)
All of the above answers ***
tell the truth about how much money you have an d how much you spend (discovery)
experiment with suggestions for earning more money, spending less money, or both (action).
Which of the following is NOT a suggestion for managing money during tough times.
drop your health insurance ***
invest only after savings
doing a great excellent work at your current job
put your financial plan in writing
Strategies for using credit cards effectively include
using cash advances on it whenever you want to do so.
gettin a card that offers the best points program even if the interest rate is not the lowest.
using your credit card instead of your debit card
paying off the full balance every month ****
According to the text, there is little advantage to shopping around for different lenders of student loans . T or F
False
The text asserts that investing in your education is safer than investing in real estate, gold oil, diamonds. T or F
True
The main steps for money management suggested in this chapter include:
1) Focus on increasing your income, and spend as much as you want.
2) Focus on decreasing your expenses, and don’t worry about how much your earn.
3) Increase your income, decrease your expenses, or do both. ****
4) None of the answer choices
According to the text, what is the biggest factor in your long-term financial well being?
1) The state of the overall economy
2) The interest rates on your credit cards
3) Your daily behavior *****
4) None of the answer choices
Privately-owned companies generally offer better student loans than the federal government. T or F
False
The main point of the Power Process, “Risk being a fool” is that mastery in most activities calls for the willingness to do something new, to fall, to make corrections to fall again. T or F
True
The 3 major types of financial aid do not include:
1) Money that you don’t have to pay back
2) Money that you do have to pay back
3) Work-study assignments
4) Full-ride scholarships ****
Strategies for using credit cards effectively do not include:
1) Choosing cards with not annual fees and lower interest rates.
2) Paying off the full balance due each month.
3) Avoiding cash advances
4) Using several credit cards so that you can spread your unpaid balances. ***
The text recommends that you save for long-term goals such as retirement before you have an emergency fund in place. T or F
False
According to the text, students who drop out of school for financial reasons can often benefit by stating the problem as
1) I cant afford it
2) I don’t know how to pay for it
3) I don’t think its worth it
4) Both 1 and 3
5) Both 2 and 3 ***
The text suggests that you manage money based on the belief that there are limits to how much money your can earn. T or F
False - - ability to earn is unlimited
According to the text, the best way to begin cutting expenses is to look at how much you spend on “small ticket” (low cost) items over the course of an entire year. T or F
False —Big ticket items that cost the most.
