Intro to Personal Finance

Which of the following best explains why students should learn about personal finance?

• Learning to manage money at this stage can eliminate financial mistakes and promote huge financial benefits for the future.

• Personal finance skills are better learned through trial and error.

• Personal finance skills are highly complex and require a great deal of time to learn.

• Learning to manage money will help you achieve a profitable career.

Key components of financial planning include all of the following except:

• Write out a detailed plan for accomplishing your goals

• Replace money myths with money truths

• Allow your financial planner to make all of your major money decisions

• Regularly monitor and reassess your financial plan

Personal financial success is primarily the result of:

• Managing your money behavior

• Winning the lottery

• Generous welfare and unemployment programs

• Inheriting money from your parents

Which of the following is a consequence of spending more than you make?

• Missed opportunity to save and invest

• Stress

• A cycle of debt

• All of the above

Which of the following is not a reason credit is marketed heavily to consumers in the United States?

• The credit industry has become extremely profitable.

• There is strong consumer demand for big-ticket items.

• Since 1920, credit laws in the United States have been relaxed in an attempt to create a mainstream alternative to loan sharks for the working class.

• The use of credit is not socially accepted in the United States.

Since you are a teenager, what you do now with money will have little effect on your financial future.

• True

• False

True financial security is achieved when your money begins to generate an income -your money starts working for you.

• True

• False

Most Americans today are wealthy and will have financial security when they retire.

• True

• False

Most Americans avoid the use of credit when it comes to buying big -ticket items like a car or furniture for their home.

• True

• False

Learning the language of money is not that important because you will be able to depend on financial planners to manage your money.

• True

• False