Personal Finance Final Study Guide

Making the right choices with your money—managing your money—involves knowing how . . .

• consumer decisions will affect your accounts

• planning, saving, spending, investing

• to make bank deposits

• earning, budgeting, saving, spending, and givings affect your money

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 family

• company or organization

• individual or company

• bank

A money principle to keep in mind is to live on _______ you make.

• less than

• the same as

• more than

• exactly 20% below what

What is financial literacy?

• the curriculum provided to college students

• the content provided in bank

• the knowledge and skill base necessary for people to be informed consumers and manage their finances effectively

• the skills to read financial documents

Personal finance is 20% _______ and 80% _______.

• head knowledge; behavior

• behavior; head knowledge

• cause; effect

• reactions; behaviors

What are the Four Walls?

• utilities, college fund, restaurants, car insurance

• cell phone, car insurance, shelter, money for movies

• food, utilities, transportation, college fund

• food, utilities, shelter, transportation

What does a budget show you?

• how much money you plan to come in and go out during the month

• how much you need to save

• how much you need to earn

• how much money you spent last month

Your money personality can affect your _____.

• ability to budget

• personal values

• choice of bank

• attitude towards budgeting

Net income is the amount you get paid before taxes.

• true

• false

A common misconception is that budgeting will keep you from having fun, when in reality a budget...

• gives you permission to spend

• restricts your fun completely

• adds more stress to your life

• means there are no rules