Ch. 7

Question 0

You must do a written ____ _____ every month

Answer 0

Cash flow

Question 1

Money is ____

Answer 1

Active

Question 2

What do u do with your checkbook?

Answer 2

You have to keep it balanced

Question 3

Whats overdrafts?

Answer 3

Sign of crisis living and sloppy, lazy money habits

Question 4

Use what kind of checks if necessary?

Answer 4

Duplicate

Question 5

If not managed and made to behave the ___ card and the ____ card are certain to become budget busters

Answer 5

Debit, ATM

Question 6

What are four reasons people hate the word budget?

Answer 6

1. Has a straight jacket connotation
2. It’s been used to abuse them
3. They’ve never had a budget that worked
4. Paralysis from fear of they will find

Question 7

What are the four reasons cash flow plans don’t work..

Answer 7

1. Leave things out
2. Over complicate your plan
3. Don’t actually do it
4. Don’t actually live on it

Question 8

What kind of money goes farther?

Answer 8

Managed

Question 9

What can a written plan all do? (5)

Answer 9

1. Remove management by crisis from your finances
2. Can remove money fights from marriages
3. Remove shame, guilt and fear that may be dealing with buying food or clothing
4. Removes many of the overdrafts from your life, and stress
5. Will show if your overspending on a certain area

Question 12

Budget

Answer 12

Another name for cash flow plan, Every dollar you make is assigned to a specific category

Question 13

Irregular income form

Answer 13

Form used by persons earning an inconsistent monthly income

Question 14

Monthly cash flow form

Answer 14

Form used to do a budget

Question 15

Duplicate checks

Answer 15

Helps people who forget to record checks in their register after writing them

Question 16

Reconcile

Answer 16

To find out if the balance in your checking registry matches the balance reported on the bank statement

Question 17

Currency

Answer 17

A system of money in general use in a particular country

Question 18

Whats active

Answer 18

Money

Question 19

If not managed these can be considered budget busters

Answer 19

ATM, debit

Question 20

Carbon checks

Answer 20

Have a second copy behind them, made of special paper, which then makes a copy of each check as you write the,

Question 21

Discipline, whats the key to wealth building?

Answer 21

Used for behavior, be consistent over time (discipline)

Question 22

Envelope system, what are the catergories

Answer 22

Used to store cash for monthly expenses, help people manage their monthly finances , categories food, entertainment, gas

Question 23

Whats hoarding

Answer 23

Keeping unneeded items and keeping them

Question 24

Impulse purchase

Answer 24

To buy something without thinking about it

Question 25

Persistent

Answer 25

Refusing to give up

Question 26

Pro active

Answer 26

Controlling a situation by causing something to happen rather than waiting to respond to it after it happens

Question 27

Procrastinate

Answer 27

Waiting until the last minute

Question 28

Zero based budget

Answer 28

assigns an expense to every dollar of one's income

Question 29

You need to do a zero based budget....t or f

Answer 29

T

Question 30

You need to reconcile your bank statement within 72 hours of receiving it...t or f

Answer 30

T

Question 31

A budget will be the same each month... T or f

Answer 31

F

Question 32

People who don't earn a consistent salary monthly, don't have to do a budget ...t or f

Answer 32

F

Question 33

You will pay interest on debit card purchases.....t or f

Answer 33

F

Question 34

Whats the easiest and most powerful plan? And what do you use?

Answer 34

Zero based, using the envelope system

Question 35

``` Your monthly budget should include.. A. Fired expenses B. variable expenses C. Money to blow D. All the above ```

Answer 35

D

Question 36

``` Doing a budget does not: A. Lead to an increase in arguments B. make your money go farther C. Show if your overspending in an area D. Remove guilt, shame and fear sometimes associated with purchases ```

Answer 36

A

Question 37

``` A written budget should be done every A. Month B. week C. 3 months D. 6 months ```

Answer 37

A

Question 38

``` What would account for a difference in balances in your checkbook registry and bank statement after reconciling the two? A. Error B. checks that didnt clear C. Deposits that did not post D. All the above ```

Answer 38

D

Question 39

``` Bounced checks are a sign of ___ living A. Normal B. crisis C. Comfortable D. Both A and B ```

Answer 39

B

Question 40

How do you complete a zero based budget

Answer 40

Income- exspense=0

Question 41

What are some reasons why the balance in your checkbook registry might not match the balance on your bank statement..

Answer 41

Fees, checks not cashed

Question 42

Why do you need a written budget even though you know you can afford your expenses ?

Answer 42

So you know where your money goes

Question 43

How can a budget help when you are working on baby step 2?

Answer 43

Your know where your money's going

Question 44

How does a budget differ when you have an irregular income vs. a predictable income?

Answer 44

The budget varies

Question 45

How do you balance your account

Answer 45

Check off what matches in your checkbook, fix inaccuracies, add deposits them subtract withdraws

Question 46

What kinds of things go into a financial plan? Also what else

Answer 46

Breaks your expenses into things like, emergencies, insurance You pick a date to get things done and stick to it

Question 47

Whats a consumer equity sheet

Answer 47

Possessions value minus your debt

Question 48

How does income sources work?

Answer 48

You list all your incomes then your total is how much you make

Question 49

What are budget busters ?

Answer 49

Payments made on a non-monthly basis

Question 50

Do you need to include small expenses on the monthly flow cash plan?

Answer 50

Yes it don't matter how small

Question 51

Whats blow money

Answer 51

Is the money you spend on anything you want

Question 52

How should you manage your debt

Answer 52

By listing all debts on your plan

Question 53

Whats a recommended percentage?

Answer 53

Is how much you should spend on a certain thing, but it varies depending on your income

Question 54

Whats a allocated spending plan?

Answer 54

It puts all your money into categories for each pay period.

Question 55

Should you fund your emergency fund first or pay for other things?

Answer 55

Emergency fund