Deck 1: Money Matters: Values, vision, mission, and You

Question 1

The 80-10-10 rule requires that you

A)save 80% of your income,give away 10%,and live on 10%.
B)live on 80% of your income,save 10%,and give away 10%.
C)give away 80% of your income,put 10% in savings,and live on 10%.
D)live on 80% of your income,save 10%,and invest 10%.

Answer 1

live on 80% of your income,save 10%,and give away 10%.

Question 2

To be frugal includes all of the following except

A)being resourceful when satisfying your need for goods and services.
B)buying all the things you want.
C)using already-owned items.
D)practicing restraint in how you consume goods and services.

Answer 2

buying all the things you want.

Question 3

To understand why you do what you do with money,you need to uncover your ________.

A)habits
B)relationship with money
C)style
D)money personality

Answer 3

money personality

Question 4

Rebecca has a $400 pay-check.She wants to use the 90-10 rule.How much must she save to achieve this?

A)$340
B)$40
C)$360
D)$50

Question 5

Who determines whether you have personal financial success?

A)Wall Street
B)Government
C)Society
D)Yourself

Question 6

Which of the following plans is not incorporated in a financial plan?

A)Budget plan
B)Investment plan
C)Estate plan
D)Education plan

Question 7

What rule(s)is (are)a good way to allocate your money?

A)80-10-10 rule.
B)90-10 rule.
C)70-30 rule.
D)Both 80-10-10 and 90-10 are good ways to allocate money.

Question 8

What is the best definition for "frugal"?

A)To spend money efficiently and effectively
B)To spend little money
C)To spend money on cheap things
D)To always buy the least expensive item

Question 9

What best describes voluntary simplicity?

A)High-stress lifestyle
B)Complex lifestyle
C)Increased consumption and clutter
D)Simple,stress-free lifestyle

Question 10

All the following are examples of being frugal except

A)using coupons.
B)spending 100% of your paycheck.
C)shopping for gently-used items on Craigslist.
D)buying items you need of value.

Question 11

Identify the importance of a financial plan.

A)You may discover your passion and a sense of purpose in your life.
B)You establish priorities in your life.
C)You gain control over your time and your money.
D)All of the options are correct.

Question 12

Which term best describes Ben Franklin's adage: "Waste not,want not."?

A)Greedy
B)Envious
C)Cheap
D)Frugal

Question 13

What is voluntary simplicity?

A)Volunteering your time and money to help a great cause
B)A high-stress,complicated lifestyle in which consumption and materialism are increased
C)Being resourceful when fulfilling your need for goods and services,using already owned items,and doing it yourself
D)A simple,low-stress lifestyle where consumption and materialism are minimized

Question 14

The rule for allocating your money that takes into account community responsibility and retirement is called the ________ rule.

A)90-5-5
B)82-8-10
C)60-20-20
D)80-10-10

Question 15

Which is not an example of being frugal?

A)Buying a used car
B)Hiring someone to paint your living room
C)Buying the things you need
D)All of the options are correct.

Question 16

What term would you use to describe a person who avoids waste and is resourceful when fulfilling his or her needs for goods and services?

A)Voluntary simplicity
B)Frugal
C)Money personality
D)Personal financial success

Question 17

Money personality is

A)the point at which spending more money has a diminishing rate of fulfillment.
B)sufficient means to support oneself.
C)your style and habits of money management.
D)income from your investments.

Question 18

What is the first step in setting the foundation for your financial plan?

A)Understanding your values and goals
B)Understanding your current relationship with money
C)Identifying your current relationship with money
D)Establishing your mission statement

Question 19

Being frugal means

A)to never spend money.
B)to spend money carelessly.
C)using discounts or coupons when fulfilling your need for goods and services.
D)shopping to improve your mood.

Question 20

How is the 80-10-10 rule divided?

A)Save 80%,live on 10%,give away 10%
B)Give away 80%,save 10%,live on 10%
C)Live on 80%,save 10%,invest 10%
D)Live on 80%,save 10%,give away 10%

Question 21

How can you obtain passive income (non-earned income)?

A)Stock dividends
B)Interest from bank investments
C)Rental properties
D)All of the options are correct.

Question 22

Money you receive from your investments and savings is called

A)passive income.
B)retirement plan (401k).
C)frugal.
D)paycheck.

Question 23

To decrease the time you need to acquire passive income,you can ________ expenses.

A)decrease
B)maintain
C)increase
D)augment

Question 24

Which is not a personal-finance life stage?

A)Age < 18
B)Age 16−24
C)Age > 65
D)Age 41−65

Question 25

What is financial independence?

A)When passive income exceeds expenditures
B)When you don't live with your parents
C)When you get a job
D)When you have $1 million in retirement savings

Question 26

If Joe has monthly expenses of $600 rent,$100 insurance,$300 food and entertainment,and $100 miscellaneous repairs,what will his income need to be (per month)for him to become financially independent?

A)$1,500
B)$2,000
C)$1,350
D)$1,100

Question 27

At what personal-finance life stage should a person start a Roth IRA?

A)Independent
B)Empty nest
C)Early family
D)Dependent

Question 28

Income received from investments and savings is called

A)passive income.
B)financial income.
C)incurred income.
D)non-earned income.

Question 29

The definition of passive income is

A)income received from one's investments and savings.
B)sufficient means to support oneself.
C)income received on a regular basis with little effort required to maintain it.
D)income received after putting in overtime.

Question 30

During which life stage is a person likely to earn the greatest amount of money?

A)Retirement life stage
B)Empty-nest life stage
C)Independent life stage
D)Early-family life stage

Question 31

There are 5 stages that make up a person's personal finance life stages.In which of these stages would a person start a 401(k)or retirement plan?

A)Dependent life stage
B)Independent life stage
C)Early-family life stage
D)Empty-nest life stage
E)Retirement life stage

Question 32

Which of the following is not a characteristic of the empty-nest life stage?

A)Paying for your children's current college education
B)Beginning to plan for retirement
C)Making more money than ever before
D)Investing more money in conservative investments

Question 33

Many people want to achieve the goal of financial independence,which is

A)when unearned income exceeds passive income.
B)when needs exceed income.
C)when expenditures exceed passive income.
D)when passive income exceeds expenditures.

Question 34

Brandon wants to purchase new furniture for his home but does not want his purchases to put him into debt.Brandon loves being social and has a talent for bartending,so he decides to take a second job bartending at night.He plans to save the money he receives from tips to purchase his new furniture.Brandon is

A)augmenting his income.
B)downshifting.
C)dollar cost averaging.
D)creating an investment account.

Question 35

Jamil has retired and can live without needing to ever work again.What has he reached?

A)Financial literacy
B)Financial independence
C)Voluntary simplicity
D)His personal financial plan

Question 36

An example of "passive income" is

A)income received from your investments.
B)income received from your part-time job,where you do nothing.
C)money received from an inheritance.
D)lottery winnings.

Question 37

Passive income is money you receive from

A)investments and savings.
B)salaries.
C)tips and wages.
D)All of the options are correct.

Question 38

Voluntary simplicity is a simple lifestyle in which both ________ and materialism are minimized.

A)consumption
B)saving
C)being frugal
D)giving

Question 39

Victoria is married and 29 years old.What life stage is she in?

A)Dependent life stage
B)Empty-nest life stage
C)Independent life stage
D)Early-family life stage

Question 40

What characteristics describe the empty-nest life stage?

A)You are ready to retire.
B)You no longer work full time.
C)Your children are no longer dependent on your income.
D)You've reached financial independence.

Question 41

Your personal mission statement should be composed of each of the following except

A)dreams.
B)stakeholders.
C)strengths.
D)passions.

Question 42

To make sure you have SMART goals,you must

A)make sure that they take a long time to achieve.
B)state a general end time.
C)state a specific end time.
D)not worry about the time it takes to achieve them.

Question 43

Connie has a goal of buying a car 10 months from now.This would be classified as a(n)

A)intermediate goal.
B)short-term goal.
C)long-term goal.
D)impulse goal.

Question 44

In order to increase their probability of attainment,goals should have a specific end date.In 55 months,Clare wants to have her college loans paid off,in 24 months,she wants to start a family,and in 15 months,she wants to take a trip to China.Which goal category is Clare pursuing?

A)Intermediate goals
B)Long-term goals
C)Short-term goals
D)Attainable goals

Question 45

When establishing your mission,you should include all of the following except

A)vision.
B)mission.
C)long-term goals.
D)value.

Question 46

The more specific your goals are,the less likely they are to

A)be thought about.
B)not be attained.
C)be focused on.
D)be attained.

Question 47

The acronym for setting good goals is SMART.What does each letter in SMART stand for?

A)Smart,Measurable,Attainable,Real,Time
B)Specific,Measurable,Attainable,Reliable,Time
C)Specific,Measurable,Attainable,Realistic,Time
D)Serious,Measurable,Attainable,Reachable,Time

Question 48

________ is the practice of investing or saving money at specific times regardless of market conditions or your personal finance outlook.

A)Down shifting
B)Financial literacy
C)Dollar cost averaging
D)Regular investing

Question 49

What do you need to create a personal mission statement?

A)Money and family
B)Food and a car
C)Values and a vision of the future
D)Morals and logic

Question 50

Your sense of fulfillment decreases with the more money you spend after you reach ________.

A)old age
B)retirement
C)enough
D)satisfaction

Question 51

A personal mission statement reflects

A)your strengths.
B)your passions.
C)your stakeholders.
D)All of the options are correct.

Question 52

How can you reach financial independence sooner?

A)Lower your expenses and increase your saving or investing
B)Increase your income and expenses
C)Decrease your income and increase your expenses
D)There is no way to speed up the financial independence process

Question 53

What should not be included in your personal mission statement?

A)Visions
B)Weaknesses
C)Strengths
D)Priorities

Question 54

What should your mission statement reflect?

A)Your life goals,how to see them clearly,and how to be motivated to pursue them
B)Your personal financial plan
C)Your likes and dislikes
D)Your family's spending habits

Question 55

The more specific your goals are,

A)the more work they are.
B)the more likely they will be achieved.
C)the more fun they are.
D)the less likely they will be achieved.

Question 56

SMART goals need to be

A)sporadic.
B)measurable.
C)artful.
D)reliable.
E)tough.

Question 57

What country was declared the "Happiest Place on Earth"?

A)The United States
B)Germany
C)Finland
D)Denmark

Question 58

Which of the following is not reflective of a SMART goal?

A)Specific
B)Measurable
C)Attainable
D)Reasonable
E)Timely

Question 59

An objective that should be attained within 1-5 years is defined as a(n)

A)intermediate goal.
B)long-term goal.
C)short-term goal.
D)personal mission statement.

Question 60

What does the S in SMART stand for?

A)Specific
B)Standard
C)Superfluous
D)Simple

Question 61

Money only makes you happy if

A)you have more than everyone else in your social group.
B)you use it to do good and are responsible with it.
C)you have enough to survive.
D)All of the options are correct.

Question 62

Who is most in control of your finances?

A)Your mom
B)Your boss
C)You yourself
D)Your spouse

Question 63

Which explains that you are in control of your finances?

A)You spend more than you make,and you buy whatever you want.
B)You see money as a resource,use money freely and carelessly,and spend as much as you make.
C)You see money as a resource,and you buy anything you want regardless of the price.
D)You see money as a resource,use money according to values,and don't spend more than you make.

Question 64

Goals are dreams with a deadline.

Question 65

How does money make you happy?

A)You use it to do good
B)You have enough to survive
C)You are responsible with your money
D)All of the options are correct.

Question 66

What are the qualities of a SMART goal?

A)Specific,measurable,attainable,relevant,time
B)Special,measurable,attitude,realistic,try
C)Specific,mission,attainable,reason,time
D)Special,mission,attitude,reason,try

Question 67

Why should you want to do a job?

A)Because it makes you happy
B)Because it has a big salary
C)Because there are a lot of benefits
D)Because you are bored

Question 68

What is the "best" career?

A)Making lots of money
B)Doing something you love and are passionate about
C)Doing something you do not like
D)Doing nothing

Question 69

The least likely reason to choose a career is because

A)it has the highest salary.
B)it matches your interests.
C)it fits your values.
D)you can pursue your passion.

Question 70

How many years should it take to attain intermediate goals?

A)Less than 1 year
B)1−5 years
C)More than 5 years
D)Over your lifespan

Question 71

Denmark,declared the "Happiest Place on Earth," is classified as a ________ society according to the text.

A)Communist
B)Post consumerism
C)Consumerism
D)Democratic

Question 72

According to Sonja Lyubomirsky,what percent of your happiness comes from your genes?

A)50%
B)10%
C)40%
D)55.34%

Question 73

Your happiness is not:

A)dependent on your genes.
B)dependent on your circumstances.
C)a result of intentional activity.
D)dependent on how much money your brother makes.

Question 74

Which is an example of a personal mission statement?

A)To live every day to the fullest with compassion and understanding
B)To retire when I'm 50 and move to Florida
C)To have a huge wedding with family and friends
D)To buy a fancy car

Question 75

What makes up 40% of your happiness?

A)Attitude and self-directed behavior
B)Family and friends
C)Paid bonuses
D)Winning the lottery

Question 76

In which instances are you really "in control of your money"?

A)When money is used for enjoyment
B)When money is a grave necessity
C)When you are shopping at the mall
D)When it is used as a resource

Question 77

Money only makes you happy if

A)there is enough to survive.
B)you use it to do good and you are responsible with it.
C)you have more than everyone else in your social group.
D)All of the options are correct.

Question 78

Which of the following does the textbook say is a major factor in your happiness?

A)Deciding when enough is enough
B)Spending your money on things you want
C)Only spending money on the things you need and saving the rest of it
D)Giving your money to charity

Question 79

Ways to gather information on careers and decide which career best suits your own mission statement and goals include

A)researching the U.S.Bureau of Labor Statistics' Occupational Outlook Handbook.
B)job shadowing.
C)internships.
D)All of the options are correct.

Question 80

All of the following describe being in control of your finances except

A)buying things you don't need.
B)using money according to your values.
C)not spending more than you make.
D)seeing money as a resource.