Unit One Flashcards
Making the right choices with your money - managing your money - involves knowing how…
earning, budgeting, savings, spending and giving affect your money
You should always make sure you have a
budget
To gain an understanding of personal finance, you should know…
Where you stand financially, how much income you have, what goals you want to set, and how you’ll reach those goals
A money principle to keep in mind is
to live on less than you make
how do you find your net worth?
subtract your liabilities from your assets
Savers have a tendency to be what
strict with their money and not spend any of it
to avoid running out of money too quickly
you can make it a habit to plan and set goals for your money
What does living paycheck to paycheck mean?
living paycheck to paycheck occurs when a person’s income is devoted to expenses, which means that little to no money is put in savings.
When you set specific goals, they should be…
specific
measurable
time sensitive
yours
written
As a single adult what should you do?
you should keep managing your money as a priority
Using credit has not always been a socially accepted practice but it has become…
normal in American culture
Short-Term
financial goals takes up to two years to reach
Credit is not a what
Component of a budget
The four walls
food
utilities
shelter
transportation
How many categories should you have in your budget?
No limit: use as many as you need to keep your budget accurate
A budget shows you what?
How much money you plan to come in and go out during the month
Your money personality can affect your…
attitude toward budgeting
Going to the movies is an example of
discretionary and variable spending
Tracking your expenses throughout the month is important because it…
gives you insight into whether you’re sticking to the budget you set
What kind of money counts as income
All money that you receive, including money from your job and gifts like birthday money
Finding a person you trust to help keep you on track with your money goals can help you stay what
accountable to reaching your financial goals
When is the right time to start creating and living by a budget
RIGHT NOW
If you overspend in one category of your budget you should what
adjust your budget by removing money from other spending categories
To ensure you’re getting a realistic budget, what should you do?
check your calendar so you can plan for upcoming monthly expenses
The best way to budget is
the way that works best for you!
Why is budgeting so important?
It gives you control of your money and sets you up for financial success in the future
