Exam 1 Flashcards
Making the right choices w/your money, managing your money involves knowing how:
(EBSSG
- Earning
- Budgeting
- Savings
- Spending
- Giving
^ Affect your money
You should make sure you always have a ________
(B)
budget
To gain an understanding of personal finance you must know
(Where,how much, what goals, how to)
- Where you stand financially
- How much income you have
- What goals you want to set
- How you’ll reach those goals
A money principle to live on is:
hint: how you live / what you make
To live on less then you make
To know your net worth:
A - L
Assets - Liabilities (Subtract your liabilities from your assets)
Savers have a tendency to:
be strict with their money and not spend any of it
To avoid running out of money too quickly:
habit to plan and set goals ___ ___ ____
Make it a habit to plan and set goals for your money
Living paycheck to paycheck means:
income devoted to _____, _____ to no ____ in savings
A person’s income is devoted to expenses, meaning that little to no money is put in savings
When you set financial goals, they should be:
(SMTYW
- Specific
- Measurable
- Time-Sensitive
- Yours
- Written
As a single adult, you should:
keep ____________ priority
keep managing money your priority
Using credit has not always been a socially accepted practice but:
it has become normal in american culture
How long short-term financial goals take:
up to ______ yrs
up to 2 years to reach
________ ____ is not a component of a budget
(CS)
Credit score
The Four Walls are:
(FUST)
- Food
- Utilities
- Shelter
- Transportation
How many categories you should have in your budget
∞
No limit; (as many as you need to keep your budget accurate)
A budget shows you how much money you plan:
flow in and out
to come in and go out during the month
Your money personality can affect your:
_______ budgeting
attitude toward budgeting
Example of discretionary and variable spending:
where you watch ________
Going to the movies
Tracking your expenses throughout the month is important because:
insight, whether you’re
it gives you insight into whether you’re sticking to the budget you set
What kind of money counts as income:
__________- you recieve, job, gifts, etc.
All money that you recieve, including from your job and gifts like birthday money
Finding a person you trust to help keep you on track with your money goals can:
stay ________ to reaching ________ goals
help you stay accountable to reaching your financial goals
The right time to start creating and living by a budget is:
RN
right now!
If You overspend in one
category of your budget you should:
adjust ________________ removing ______ other _________ categories
adjust your budget by removing money from other spending categories
To ensure you’re creating a realistic budget:
check your ________ so you can ___________ upcoming ______________
check your calendar so you can plan for upcoming monthly expenses
The best way to budget is:
best way for _______
the way that works best for you!
Why budgeting is so important:
control _______ sets you up for ___________ in the future
it gives you control of your money and sets you up for financial success in the future
Why should you be aware of whether you are a saver or a spender
Short answer question - include response here (add more)
- affects your attitude towards budgeting
- know your habits so you know how it will affect your money management
Explain the difference between a fixed expense and a variable expense, give an example for each
Short answer question - include response here (add more)
Fixed - rent (you expect to be the same amount every month)
Variable - groceries (amount spent can vary from month to month)
