Personal Finance Unit 1 Review

You should always make sure that you have a…

• Credit Line

• Credit Card

• Budget

• Direct Deposit

What is the First Foundation?

• Build Wealth and Give

• Pay Cash for College

• Open a Checking Account

• Save a $500 Emergency Fund

Being a spender has many more positives than being a saver.

• True

• False

Personal finance is all the financial decisions a(n)______________ must make in order to earn, budget, save, spend, and give money over time.

• Individual or Company

• Individual or Family

• Bank

• Company or Organization

Avoiding debt can lead to financial freedom and hope.

• True

• False

After World War 1, the demand for products increased, and people began getting credit without loan sharks.  Because of this, credit…

• Was devalued in the marketplace

• Was offered at an even higher interest rates by loan sharks

• Increased so rapidly, loan sharks became obsolete

• Started to become more socially acceptable

A money principal to keep in mind is to live on ________ you make.

• Exactly 20% below what you make

• More than

• The same as

• Less than

To calculate your net worth, subtract your liabilities from your _________.

• Net Income

• Assets

• Other liabilities

• Previous Net Worth

Savers have a tendency to be….

• Strict with their purchases but spend money without a plan

• Strict with only purchases for themselves

• Strict with what they spend their money on, other than groceries

• Strict with their money and not spend any of it.

It is possible to pay for college with cash.

• True

• False