Personal Finance > 9 week exam > Flashcards

9 week exam Flashcards

(100 cards)

Study These Flashcards
1
Q

All the financial decisions an individual or family must make in order to earn, budget, save, spend and give money over time

A

personal finance

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2
Q

a person or organization that uses a product or service

A

consumer

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3
Q

having the knowledge and skills you need as a consumer to be able to manage your money well

A

financial literacy

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4
Q

money owed to another person or company

A

debt

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5
Q

What percentage of people say they are burdened by consumer debt?

A

72%

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6
Q

About how much debt does the average borrower have, without mortgages?

A

$34,000

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7
Q

Debt is many times the result of a failure of what?

A

contentment

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8
Q

What is an expression used to describe a person or household whose monthly income is devoted to expenses and has little to no savings?

A

paycheck to paycheck

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9
Q

What percentage of Americans use all of the money they get from one paycheck just to make it to the next?

A

80%

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10
Q

Knowledge is what percent of personal finance?

A

20%

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11
Q

the granting of a loan and the creation of debt, any form of deferred payment

A

credit

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12
Q

the percentage of principal charged by the lender for use of its money

A

interest rate

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13
Q

a person that charges borrowers interest rates above the established legal rate

A

loan shark

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14
Q

the additional cost a lender charges for borrowing money

A

interest

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15
Q

The stock market crashing in the 1920’s caused what?

A

The great depression

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16
Q

What did FDR create after the great depression, saying that it would promote economic recovery and and social reform that would allow working-class Americans to get back on their feet?

A

The new deal

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17
Q

In 1950, the average debt per person was under_______ but now it is over_______

A

1,500 and 34,000

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18
Q

the highest debt level is among 45-54 years old with the _______ age bracket coming in a close second

A

35-44

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19
Q

plan of action that allows a person to meet not only their immediate needs, but also their long term goals

A

financial plan

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20
Q

amount by which the value of a person’s assets exceeds or falls behind the value of their liabilities

A

net worth

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21
Q

anything that is owned by someone, including money in the bank or investments

A

assests

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22
Q

financial debts or obligations

A

liability

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23
Q

the dollar value of a person’s assets is greater than the dollar value of their liabilities

A

positive net worth

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24
Q

the dollar value of a person’s liabilities is larger than the value of their assets

A

negative income

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25
what a person earns after payroll taxes and other deductions are taken out
net income
26
the cost of goods and services
expense
27
what percent of couples with great marriages discuss their money goals and dreams together?
94%
28
what is the leading cause of divorce in America?
money fights
29
What do people consistently do to their own wise financial plan?
think of ways to spend the money before they even get it
30
what is a written plan for giving, saving, and spending?
budget
31
Who is a budget for?
everyone
32
what percentage of Americans say budgeting is important vs. what percentage actually do it?
95%, 35%
33
A budget simply requires what?
effort
34
what is your biggest wealth building tool/ any money you earn or receive
income
35
what percentage of students who take personal finance classes create a monthly budget?
80%
36
What must be the first priority in your budget?
giving
37
what must be the second priority in your budget?
saving
38
What kind of expense stays the same every month?
fixed expense
39
What kind of expense varies in dollar amount but you can expect it each month?
variable expense
40
What kind of expense occurs at various times and tends to be large sums
intermittent
41
What kind of expense is an expense for something you don't need
discretionary
42
How much of your income should you save for giving?
10%
43
what is the cash flow plan that assigns an expense to every dollar income
zero-based budget
44
What does a zero-based budget do to each dollar received?
gives it a job
45
what are the four walls of expenses?
food, utilities, shelter, transportation
46
How much of your gross income should you invest?
15%
47
what is the amount you earn before taxes and other payroll deductions?
gross income
48
what percentage of millionaires stick to their budgets?
93%
49
what is a record that summarizes all the income and outgo over a certain time period
cash flow statement
50
what percentage of students who have taken this course feel they are better able to talk about finances with their families?
65%
51
what is the ability to delay gratification
maturity
52
what is earning based off of a percentage of sales made?
commission
53
what type of income comes in at different amounts of time
irregular income
54
the average family spends how much money on clothes each year?
$1800
55
what heavily influences your desire for a budget?
financial personality
56
what must you schedule each month for your budget?
time
57
what does budgeting in a marriage require?
work
58
what do successful marriages have concerning budget planning?
budget committee meeting
59
who does your money really belong to?
God
60
True or False: "Americans are good savers"
False
61
what percent of Americans could not cover a $400 emergency
36%
62
45% of Americans have less that how much saved for an emergency?
$1000
63
what percentage of Americans have $0 saved
14%
64
debt steals your future, but what saves it?
Saving
65
Name 3 of the consequences of not saving your money
living paycheck to paycheck, having to deal with unexpected expenses, not paying bills on time, being enslaved to debt, and saying goodbye to your dreams
66
what percent of Gen Z is starting to save
56%
67
what are the 3 basic reasons to save
emergencies, large purchases, wealth building
68
what is a saving account set up to be used to cover financial emergencies
emergency fund
69
what 2 problems does an emergency fund solve?
you don't have to use a credit card to cover cost and you can use cash with has the power to turn an emergency into an inconvenience
70
what is a purchase that requires a significant amount of money?
large purchase
71
what amount of millionaires earned less than $100,000 but saved regularly
1/3
72
you will only begin to save when it becomes what kind of priority
emotional priority
73
what are 2 easy ways to start saving
save extra money in a jar/piggy bank and set up an automatic transfer account
74
one out of how many Americans experienced job loss or income disruption during the pandemic
1 out of 3
75
your insurance is meant to be____________ not ________
insurance, investment
76
What are the three questions you should ask to see if it is an emergency or not
is it unexpected, necessary, and urgent
77
Your new car will lose what percent of your cars value within 5 years
60%
78
the total U.S. auto loan debt was how much at the beginning of 2020
$1.25
79
True or False: "You should take some time and walk away from the store display or computer screen before you buy it"
True
80
what is the principal charged by the lender for the use of money
Interest rate
81
amount of interest charged on a debt but not yet collected
accrued interest
82
how long does a zero-interest typically go for
12 months
83
what happens when you are unable to make the payments or pay off the balance
pay all interest back to the date you made the purchase
84
how often do stores advertise the full price for an item
Rarley
85
what must a high schooler focus on before investing?
paying for college
86
you will have to work consistently for how long before you build wealth
3-6 months
87
what percentage of Americans have $0 saved for retirement
25%
88
what does it take to be a millionaire
consistently add money and time for money to grow
89
what is the average rate of growth for an investment over time
compound growth
90
what is the key to building wealth
get started quickly
91
what must you do to create big-time success
stay focused
92
93% of millionaires said that their wealth came from what?
hard work
93
what is the interest paid on interest previously earned
compound interest
94
initial amount of money invested or borrowed
principal
95
measure of an investment's profit or loss
rate of return
96
what is compound interest earned in
fixed rate
97
persistent rise in the cost of goods and services
inflation
98
what will inflation do to prices?
Drive them up!
99
BONUS: What are a few ways you can save $500?
you can save $500 quickly by creating a zero-based budget, cutting expenses like dining out and subscriptions, increasing your income with a side hustle, and selling unnecessary items
100
BONUS #2: How can you escape the auto loan matrix?
you can escape the auto loan matrix by paying off your current car loan as quickly as possible and committing to only buying cars with cash from that point forward
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