Personal Financial Management - Chapter 7

Question 0

ATM card

Answer 0

Automated teller card which allows you to make transactions in ATMs

Question 1

Active

Answer 1

Money - it’s always moving and can be utilized in many ways

Question 2

Budget (2)

Answer 2

Plan for making and spending money

Another name for cash flow plan

Question 3

Carbon checks

Answer 3

Checks that have a second copy behind them made of special paper which makes a copy of each check as you write them

Question 4

Currency

Answer 4

Money

Question 5

Debit card

Answer 5

A bank card that automatically deducts the amount of a purchase from the checking account of the cardholder

Question 6

Discipline

Answer 6

Training to improve strength or self control

Question 7

Envelope system (5)

Answer 7

A control system where an individual places the actual budgeted amount of cash into the specific envelope labeled for the expense

Breakdown of savings form

$2,000 in savings, then break it down

Consumer equity = what you own - what you owe

Can have negative equity

Question 8

Hoarding

Answer 8

Reserving more than necessary

Question 9

Impulse purchase

Answer 9

To buy an item without thinking about it

Question 10

Persistent (2)

Answer 10

Not giving up

Continuing on

Question 11

Pro-active

Answer 11

Controlling a situation by causing something to happen rather than waiting to respond to it after it happens - takes strong initiative

Question 12

Procrastinate (2)

Answer 12

To delay

Put off until later

Question 13

Reconcile (3)

Answer 13

To bring back into agreement

Process used to determine if the balance in your checking registry makes the balance reported on the bank statement

Reconcile your bank statement within 72 hours of reconciling it

Question 14

Zero-based budget

Answer 14

Cash flow plan that assigns an expense to every dollar of one’s income, where in the total income minus the total expenses = zero

Question 15

Irregular income form

Answer 15

Form used by persons earning an inconsistent monthly income

Question 16

Monthly cash flow form

Answer 16

Form used to do a budget

Question 17

Duplicate checks

Answer 17

Helps people who forget to record checks in their register after writing them

Question 18

You do/don’t pay interest on debit card purchases?

Answer 18

You DONT pay interest on debit card purchases

Question 19

How often does a budget change?

Answer 19

Every month

Question 20

People who don’t earn a consistent salary monthly, are the ones…

Answer 20

who have a budget more than anyone

Question 21

Balanced checks are a sign of…

Answer 21

Crisis living

Question 22

Your monthly budget should include

Answer 22

Fixed expenses

Question 23

What would account for a difference in balances in your checkbook registry and bank statement after reconciling the two? (3)

Answer 23

An error or omission

outstanding checks that didn’t clear

Deposits that didn’t post

Question 24

How to do a budget (3)

Answer 24

Makes your $ go farther Shows if you're overspending Removes guilt and shame sometimes associated with purchases

Question 25

Reasons people hate budgets (4)

Answer 25

It has a straight jacket connotation Has been used to abuse them Never had a budget that worked Paralysis from fear of what they might find

Question 26

Cash flow plans don't work when... (4)

Answer 26

You leave things out Over complicate your plan Don't do it Don't live on it

Question 27

What is the most easiest and most powerful plan?

Answer 27

Zero-based budget plan using the envelope system

Question 28

How long does it take to get the envelope system all figured out?

Answer 28

3-4 months