Foundations in Personal Finance: Key Concepts and Principles

Why is it important to learn about money management at a young age?

• Because it is fun to learn.

• Because it helps in making friends.

• Because it ensures financial success in the future.

• Because it is a school requirement.

What does personal finance mean?

• How you handle your money.

• How you make friends.

• How you spend your free time.

• How you study for exams.

What is the first foundation for financial success?

• Get out of debt.

• Pay cash for your first car.

• Invest and give generously.

• Get a $500 emergency fund.

Why is having an emergency fund important?

• To lend money to friends.

• To go on vacations.

• To pay for unexpected expenses.

• To buy new clothes.

What percentage of personal finance is behavior?

• 100%

• 50%

• 80%

• 20%

Which of the following is NOT one of the four basics of becoming money smart?

• Work

• Spend

• Save

• Borrow

What is an asset?

• Something you owe.

• Something you own.

• A financial mistake.

• A type of loan.

What is a liability?

• A financial gain.

• A type of investment.

• Something you owe.

• Something you own.

What is the main pitfall of financial irresponsibility?

• Generosity

• Debt

• Savings

• Investments

Why should you avoid debt?

• It causes stress and financial problems.

• It helps you save money.

• It is a good financial strategy.

• It makes you popular.