| A | B |
|---|
| purpose of this tool is to set money aside for unexpected financial emergencies and to provide a sense of financial security | emergency fund |
| When you're older and out of school your emergency fund should be what amount | 3-6 months' worth of expenses |
| You should hold off on investing for retirement until you have paid for what | college loan debt |
| Overdraft fees, bouncecd check fees, stress are all consequences of | overdrawing your checking account |
| fixed, discretionary, variable are all types of | expenses to be included in your budget |
| rent is an example of this type of expense | fixed |
| car repairs are an example of this type of expense | variable |
| overspending, guilt, managemnt by crisis can all be avoided through the use of a | written budget |
| Percentage of Americans living paycheck to paycheck | 70% |
| type of budget ensures that every dollar you make is assigned a specific purpose | zero-based |
| type of debt mangement method advises to get rid of smallest debts first rather than putting all money toward largest debt | snowball method |
| group that is targeted by credit card companies | teenagers |
| most Americas today do NOT have this when they retire | financial security |
| The average repayment period for a student loan | 10 years |
| you do not have to do this in order for employers to recognize your talents and stregnths | go to a prestigious school |
| opportunity cost, buying motives, if you can't pay with cash don't buy it | things to consider when making a significant purchase |
| Never buy something you do not | FULLY UNDERSTAND |
| this group is the strongest influence on teens' buying decisions | friends |
| using this for a purchase gives a person more bargaining power | cash |
| this allows you to Enable their money to make money | saving and investing |
| purpose of insurance | transfer financial risk |
| benefit of diversification in your investments | reduced risk |
| kids are grown, debt free, fully funded retirment are characteristics of | someone who is self-insured |
| insurance you should NOT carry directly after high school | long-term care, cancer insurance |
| number-one cause of divorce in America | money fights |
| The day that income tax filings are due in the United States | April 15 |
| These pay for services such as roads, education, and social services | taxes |
| first priority in selecting a career path | is it a good fit for you personally |
| An obligation of repayment owed by one party to another. | Debt |
| A fee paid by a borrower to a lender for use of borrowed money. | Interest |
| Money set aside and left alone for a "rainy day". | Emergency Fund |
| Saving money over time for a large purchase. | Sinking Fund |
| The persistent rise in the cost of goods and services. | Inflation |
| A written cash flow plan. | Budget |
| Preferred method of debt repayment; includes a list of all debt organized smallest to largest balance. Minimum payments to all debt except for smallest which is attacked with extra money. | Debt Snowball |
| Process of communicating the value of a product or service to the customer. | Marketing |
| To buy an item with credit; paying over time with interest. | Financing |
| Ability to walk away from a purchase when negotiating. | Walk-away Power |
| A list of your investments. | Portfolio |
| Quality of an asset that permits it to be converted into cash without loss of value; availability of money. | Liquidity |
| Relationship of reward compared to the amount of risk taken when it comes to investments. | Risk-return Ratio |
| Amount you must pay before your received any benefits from insurance company. | Deductible |
| The amount you pay to purchase different types of insurance. Based on risk level. | Premiums |
