Finance study guide

Question 1

If you have limited means, you ________

Answer 1

Can’t have everything

Question 2

When you must give something up in order to get something else, it is called _______

Answer 2

An opportunity cost

Question 3

An opportunity cost can make decision making difficult because _______

Answer 3

You must choose to give up some things in order to get other things

Question 4

Food, water, shelter, and clothing are examples of ______

Answer 4

Needs

Question 5

If you have limited means you may need to prioritize. This could mean crossing video games off your shopping list and replacing them with ______

Answer 5

Groceries

Question 6

Setting a goal lets you ______

Answer 6

Achieve what you want to do

Question 7

What helps you NOT meet a goal?

Answer 7

Hoping you meet it

Question 8

Tracking your spending can help you _____

Answer 8

Know where your money is being spent

Question 9

When you make a budget, it makes tracking easier. TRUE OR FALSE

Answer 9

True

Question 10

If you have a budget, you have ______

Answer 10

A plan for using your money over a set of time

Question 11

Keeping track of what you earn, spend, and save are key parts of a ______

Answer 11

Budget

Question 12

What is a reliable source of info for when you want to buy something

Answer 12

Expert reviews

Question 13

What kind of info should you find when you want to research buying something

Answer 13

Reliable information

Question 14

What is not a good source of information?

Answer 14

Product advertisement

Question 15

What is a job?

Answer 15

Something you do to earn money

Question 16

What is a career?

Answer 16

The type of job you do for a long time

Question 17

How is a career path different from a job

Answer 17

A career path is made up of jobs from the same field

Question 18

If you have a friend interested in dogs, what would they need to have to make that interest into a way of making money

Answer 18

Dogs in the neighborhood that need walking.

Question 19

If someone likes animals and becomes a zookeeper, they chose a career based on ________

Answer 19

Interests

Question 20

If someone can cook and bake, and become a chef, what have they chosen a career based off of

Answer 20

Skills

Question 21

Why is choosing a career based on interests and skills important

Answer 21

Its important to like what you do and be able to do it

Question 22

Whats the difference between a salary and a wage

Answer 22

Wage- amount paid per hour that you work
salary- Set income paid regularly

Question 23

Cash is ______

Answer 23

Money you have today

Question 24

Credit is _____

Answer 24

Money you borrow and promise to pay back later

Question 25

Debt is ______

Answer 25

Money you have to pay back

Question 26

Why is a credit card a type of debt

Answer 26

Using a credit card is borrowing money that will be paid back later

Question 27

You should NOT use a credit card when ____

Answer 27

You want something now that you will never be able to afford

Question 28

A credit history is _____

Answer 28

A record of how you pay back money to borrow

Question 29

Why is it important to save money

Answer 29

Savings allow you to buy the things you want and need at s later time

Question 30

Connection between goals and savings>

Answer 30

Goals can give you a reason to save

Question 31

Interest earned on a savings account is

Answer 31

The percent a financial institution pays you to borrow money

Question 32

Insurance can help ___

Answer 32

In an emergency

Question 33

How can insurance help with meeting savings goals

Answer 33

Insurance pays for some costs of an emergency so you can keep your savings

Question 34

Why might a stock be an investment that can have some risks

Answer 34

You can lose money if the business you own stock in does not do well