Personal Finance Benchmark

To gain an understanding of your personal finances, you should know . . .

• Your financial goals

• Where you stand financially, how much income you have, what goals you want to set, and how you’ll reach those goals

• How much income you have

• Your investment portfolio and your financial advisors’ contact information

What is The First Foundation?

• Pay cash for college.

• Build wealth and give.

• Save a $500 emergency fund.

• Open a checking account.

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

• Exactly 20% below what
• More than

• The same as

• Less than

To know your net worth, subtract your liabilities from your

• Other liabilities

• Net income

• Previous net worth

• Assets

5. 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

What does living paycheck to paycheck mean?

• Living paycheck to paycheck is an expression used to describe a situation when someone eagerly awaits their next paycheck to plan for the month’s expenses.

• Living paycheck to paycheck is an expression used to explain the situation in which a person cannot plan past the next paycheck due to financial and budgeting difficulties caused by outside circumstances.

• Living paycheck to paycheck occurs when a person’s income is devoted to expenses which, in turn, means that little to no money is put in savings.

• When a person chooses to not deposit their paycheck, they are living paycheck to paycheck.

What is financial literacy?

• The curriculum provided to college students about finances for their degrees

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

• The content provided

  in bank statements for consumers

• The skills to read financial documents for personal finance classes, goals, and statements.

What does a budget show you?

• How much you need to save

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

• How much money you need to earn

• How much money you spent last month

Your money personality can affect your

• Attitude toward budgeting

• Choice of bank

• Personal values

• Ability to budget

Going to the movies is an example of what types of expenses?

• Intermittent and variable

• Discretionary and variable

• Discretionary and fixed

• Intermittent and fixed