Chapter 7 Flashcards Preview

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Flashcards in Chapter 7 Deck (32)
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1
Q

Meaning money is active

A

Active

2
Q

You must have money in the bank in order to use both of these cards

A

ATM Card

debit card

3
Q

Another name for cash flow plan

A

Budget

4
Q

Duplicate checks

A

Carbon checks

5
Q

A system of money

A

Currency

6
Q

Being determined to save money

A

Discipline

7
Q

Envelopes used to divide money into certain categories such as food or clothes so one does not overspend in one category

A

Envelope system

8
Q

Unsystematic collecting

A

Hoarding

9
Q

Refusing to give up

A

Persistent

10
Q

To buy an item without thinking about it

A

Impulse purchase

11
Q

Taking action yourself rather than waiting for something to happen

A

Pro active

12
Q

To put off until later

A

Procrastinates

13
Q

Process used to determine if the balance in your checking registry matches the balance report it on the bank statement

A

Reconcile

14
Q

When the total of income minus the total of expenses equals zero

A

Zero based budget

15
Q

Form used to do a budget

A

Monthly cash flow form

16
Q

Form used by persons earning an inconsistent monthly income

A

Irregular income form

17
Q

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

A

Duplicate checks

18
Q

You need to do a zero based budget T/F

A

True

19
Q

You will pay interest on debit card purchases T/F

A

False

20
Q

A budget will be the same each and every month T/f

A

False

21
Q

You need to reconcile your bank statement within 72 hours of receiving it T/F

A

True

22
Q

People who don’t earn a consistent salary monthly, do not have to do a budget T/F

A

False

23
Q

Bounced checks are a sign of _____ living

A

Crisis

24
Q

A written budget should be done every____

A

Month

25
Q

Your monthly budget should include….

A

Fixed expenses
variable expenses
money to blow

26
Q

What would account for a difference in balances in your checkbook registry and bank statement after reconciling the two

A

An error
Check that didn’t clear
Deposits that did not post

27
Q

Doing a budget does not lead to….

A

An increase in arguments

28
Q

Explain how to complete a zero based budget

A

Write down the money that should be spent that month and it should equal zero

29
Q

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

A

You may have made a mistake in recording

30
Q

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

A

You may overspend without a budget

31
Q

How does a budget different when you have an a regular income versus a predictable income

A

You should prioritize by importance on the budget

32
Q

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

A

Money to pay off certain debts