Course Test

Avoiding debt can give you financial peace and a sense of hope for the future.

• True

• False

Why is tracking your expenses throughout the month important?

• It allows you to delete categories you don’t like.

• It gives you insight into whether you’re sticking to the budget you set.

• It helps you pull money from your savings to spend in other categories.

• It really isn’t that important in the long run.

Why is budgeting so important?

• It’s a good way to make sure all your money is spent by the end of the month.

• It helps you figure out the best way to justify purchases that maybe aren’t necessary.

• It gives you control of your money and sets you up for financial success in the future.

• It helps you brush up on your math skills.

Your monthly rent payment is an example of a variable expense.

• True

• False

The first priority in your budget should be _________.

• Investing

• Saving

• Spending

• Giving

What is The Second Foundation?

• Get out and stay out of debt.

• Save a $500 emergency fund.

• Pay cash for your car.

• Build wealth and give.

When you buy with credit, you typically spend more than you would with cash or a debit card.

• True

• False

Something that credit card commercials don’t show you is . . .

• People making payments for months or years on those credit card purchases

• How much your credit score will grow right away

• How happy your parents will be that they don’t have to lend you cash anymore

• How great your life will be with payments

When you finance a new car, you will end up paying more than the sticker price.

• True

• False

Creating a budget, having clear money goals, and slowing down to think through a purchase are all practices of a __________.

• College student

• Wise consumer

• Foolish consumer

• Free spirit