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
