Deck 2: Goal Setting and Life Management

Question 1

Flexible expenses may include:

A) Clothing
B) Utilities
C) Food
D) All of the above
E) None of the above

Answer 1

D

Question 2

Start managing your money:

A) After you have worked in your dream job for a year
B) After you get married
C) After you finish college
D) All of the above
E) None of the above

Answer 2

E

Question 3

The key to good budgeting is:

A) Saving
B) Cash management
C) Investing
D) All of the above
E) None of the above

Answer 3

D

Question 4

Money going out is:

A) Income
B) Gross pay
C) Expense
D) All of the above
E) None of the above

Question 5

Income can come from:

A) Working
B) Student loans
C) Parents
D) All of the above
E) None of the above

Question 6

Practicing good financial management while still in college benefits you because:

A) Budgets keep you focused and eliminate waste
B) You will most likely be earning more money once you complete your education
C) Poor credit decisions will haunt you in the future
D) All of the above

Question 7

If you do not have your personal finances under control, it may cause:

A) Irresponsibility
B) Stress
C) Reduced performance
D) All of the above
E) None of the above

Question 8

A ________ is a detailed financial plan for a specific period of time.

A) Income statement
B) Investment strategy
C) Pay check
D) Savings plan
E) Budget

Question 9

Money coming in is called:

A) Gross amount
B) Expense
C) Income
D) All of the above
E) None of the above

Question 10

If you find yourself in a credit hole:

A) Skip making payments until you can afford to pay off your bill
B) Make late payments only on your largest debt
C) Take out a loan to pay off your debt
D) None of the above

Question 11

A financial plan:

A) Should be developed prior to your personal goals
B) Should include short-term and long-term goals
C) Is a result of your career success
D) All of the above

Question 12

When creating your budget, use:

A) Money left after taxes and deductions
B) Money you saved from working
C) Money you get from your parents
D) All of the above
E) None of the above

Question 13

To start budgeting you can:

A) Put a coffee maker in your office instead of buying coffee
B) Start saving a small amount each week
C) Bring a bagged lunch from home instead of buying lunch at a restaurant
D) All of the above
E) None of the above

Question 14

The practice of good financial management includes:

A) Developing good saving habits
B) Creating good spending habits
C) Practicing the wise use of credit
D) All of the above

Question 15

Money wasters include:

A) Toothpaste
B) Groceries
C) Rent
D) All of the above
E) None of the above

Question 16

When creating a budget, use your:

A) Net income
B) Taxes
C) Miscellaneous income
D) All of the above
E) None of the above

Question 17

Personal financial management will:

A) Make reaching goals more difficult
B) Begin when you get your dream job
C) Restrict your activities
D) All of the above
E) None of the above

Question 18

An example of a fixed expense is:

A) Clothing costs
B) Food costs
C) Rent
D) All of the above
E) None of the above

Question 19

The best way to stay out of the debt hole is to:

A) Never get a credit card
B) Get a credit card, but never use it
C) Get a credit card, and use it when needed
D) Get a credit card, but carefully manage its use and repayment

Question 20

Knowing your expenses:

A) Provides money for money wasters
B) Help you keep track of your spending
C) Helps you identify your gross total income
D) All of the above

Question 21

Steps toward getting out of debt include:

A) Pay off your bill with the smallest interest first
B) Purchase only low cost items on a credit card
C) After you pay off a loan, reward yourself by spending a small amount of cash
D) None of the above

Question 22

Steps toward getting out of debt include:

A) Using your credit card wisely
B) Paying other loans with the money from a paid-off loan
C) Prioritizing what you owe
D) All of the above
E) None of the above

Question 23

Some issues to watch for when applying for a loan are:

A) Hidden costs
B) Payment deadlines
C) Interest rates
D) None of the above
E) All of the above

Question 24

________ is the amount of money that is yours after paying off debt.

A) Liability
B) Assets
C) Expenses
D) All of the above
E) None of the above

Question 25

The three credit reporting agencies include:

A) Lehman Brothers, Equifax, and Merrill Lynch
B) TransUnion, Equifax, and Lehman Brothers
C) Equifax, Merrill Lynch, and Experian
D) Equifax, Experian, and TransUnion

Question 26

Investments:

A) Are the same as savings
B) Should be a priority when receiving a paycheck
C) Both A and B
D) None of the above

Question 27

When applying for credit, lenders will consider your:

A) Capacity
B) Collateral
C) Character
D) All of the above
E) None of the above

Question 28

A(n) ________ is money you owe.

A) Bill
B) Debt
C) Expense
D) All of the above
E) None of the above

Question 29

If you find yourself in a credit hole, it is better to:

A) Keep buying
B) Stop making payments
C) Not worry about late payments
D) All of the above
E) None of the above

Question 30

With a FICO score:

A) The higher your FICO score, the better your credit
B) The higher your FICO score, the worse your credit
C) The lower your FICO score, the better your credit
D) None of the above

Question 31

When starting a savings plan:

A) Have at least five months' income saved for emergencies
B) Wait until you have acquired your career job
C) Save only in months where you have extra income
D) All of the above
E) None of the above.

Question 32

Debt:

A) Is the amount of money that is yours after paying off both assets and liabilities
B) Includes tangible items that are worth money
C) Is the cost of borrowing money
D) None of the above

Question 33

A FICO score:

A) Is a common credit rating system
B) Is only issued through banks
C) Is a type of credit report
D) None of the above

Question 34

Your savings account:

A) Should contain at least five months' income
B) Should have approximately 5% of your paycheck contributed to it each month
C) Both A and B
D) None of the above

Question 35

An example of a personal asset is a:

A) Job
B) Paycheck
C) Car
D) All of the above
E) None of the above

Question 36

If you have a credit card:

A) Pay it off each month
B) Spend wisely
C) Use it as a tool to gain good credit
D) All of the above
E) None of the above

Question 37

Credit reports:

A) Only report credit history under your current name
B) Only report payments that were made on time
C) Can only be secured without your permission
D) Show any liens, foreclosures, or bankruptcies

Question 38

A credit report may include:

A) Previous addresses
B) Previous employers
C) Previous names
D) All of the above
E) None of the above

Question 39

You are entitled to a copy of your credit report:

A) Once every twelve months from each agency for free
B) Whenever you are denied credit
C) Both A and B
D) none of the above

Question 40

The way to build good credit is to:

A) Secure a credit card, but never use it
B) Pay off the credit card in full, each month
C) Purchase unnecessary items
D) All of the above

Question 41

Personal financial management will not affect your work situation.

Question 42

Financial success begins with discipline and planning.

Question 43

Do not start a savings and investment plan until you get a good paying job.

Question 44

The process of controlling your income and expenses is known as banking.

Question 45

Once you complete your first budget, you should not adjust it.

Question 46

An example of an expense is rent.

Question 47

Expenses that do not change from month to month are referred to as flexible expenses.

Question 48

Flexible expenses are more easily identified than fixed expenses.

Question 49

If you do not manage your finances, you probably will eventually experience stress at home and work.

Question 50

To prevent identity theft:

A) Provide personal information over the Internet
B) Dispose of junk mail properly
C) Sign up for credit card and marketing lists
D) All of the above
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false.

Question 51

Personal financial management is important in your career and work performance.

Question 52

Your goals are supported by your finances.

Question 53

Many employers believe that if you cannot control your personal finances you may not be a responsible employee.

Question 54

As your income increases, your expenses will decrease.

Question 55

An example of income is money that comes from a student loan.

Question 56

It is important that you start a budget as soon as possible.

Question 57

It is better to average flexible expenses than to try to determine which months may be more or less.

Question 58

Goals are not supported by your finances.

Question 59

Net income is the amount of your paycheck after your employer takes out all taxes and deductions.

Question 60

The key to good budgeting is cash management.

Question 61

It is important that you make your first budget perfect.

Question 62

The telephone bill you pay each month would be considered a liability.

Question 63

If you find yourself in a credit hole, only make the minimum monthly payment until you are out of debt.

Question 64

Interest is the total cost you will pay when taking out a loan.

Question 65

Your car loan is an example of a liability.

Question 66

All junk mail should immediately be thrown into the garbage can.

Question 67

A credit card can be used as a tool for creating good credit.

Question 68

You should never take out a loan.

Question 69

Having good credit will help you buy large items at a lower interest rate.

Question 70

The first step toward creating a budget is to identify goals.

Question 71

Investments for the future should begin now.

Question 72

The best way to stay out of the debt hole is to manage your credit.

Question 73

An automatic deduction plan helps your savings plan because your money is automatically deducted from your paycheck.

Question 74

There are non-profit counseling services available to help you get out of debt.

Question 75

You will be able to save without sacrificing other spending if you set up a budget.

Question 76

It is important to have a miscellaneous category in your budget because you will use it frequently.

Question 77

Credit reports include all personal information about your family in addition to a detailed credit history.

Question 78

You should keep your savings hidden in a safe place at home.

Question 79

Credit reports include all personal identification information.

Question 80

It is best to set up a budget on a yearly basis.