FINC Final Flashcards
(56 cards)
Even though a regular savings account is suitable when you are saving $500 for your beginner emergency fund, why is a money market mutual fund a better place to keep your completed emergency fund?
A money market mutual fund is easy to access; Typically a money market mutual fund averages a higher interest rate than a savings account; A money market mutual fund has check writing privileges.
Savings is about:
emotion and contentment
Which is not a key to saving money?
Your income
The Baby Steps can best be described as:
A systematic process for getting out of a financial mess and into building wealth; A series of seven steps that help your plan, save and manage money; A series of steps that work in good times and in bad times.
On average, how long will it take before your budget begins to work effectively?
3 Months
Which of the following is not true of a zero-based budget?
if you have extra money left at the end of the month, your budget was successful
How often should you balance your checking account?
Once a month
If 80% of millionaires are first-generation rich, then one can conclude:
They started with nothing and did smart stuff
On average, payday lending, cash advance and title pawn loans cost the consumer:
400% or more annually
Which statement is not true about debt consolidation?
You end up saving money because you get a lower interest rate
Which is true about the practice of marketing credit cards to young adults?
All of the above…A. Teens are the number-one target of credit card companies in America today.B. Brand loyalty to your first card is incredible, so credit card companies work hard to win you over first . C. Colleges are losing more students to credit card debt problems than to academic failure
Why do people think that the home equity loan is a good idea?
All of the above…a. There is a tax refund
b. It serves as a substitute for an emergency fund
c. It is a way to consolidate debt
Kevin has the following debts: How should he prioritize his debt snowball?
Visa, Student Loan, Car, Home Equity Loan
Which type of loan can be used for debt consolidation?
Home Equity
As you grow, you will improve most in the areas you are _____ in:
Weakest
When looking for a job, find something that blends your:
All of the Bible…a.) skills
b. ) personality traits
c. ) dreams
During college you have two goals: stay in school and:
Stay out of debt
Which is true in terms of singles and couples when it comes to money?
Singles are more prone to impulse buying than couples because they don’t have to be held accountable.
In which of the following ways are men and women different when relating to money?
All of the above…a.) Men view the emergency fund as boring; women view it as security.
b. ) Women view the emergency fund as the key to their finance plan; men view it as not being sophisticated enough.
c. ) Women like to hunt down deals when shopping; men like to negotiate.
We’re happiest and most fulfilled when we’re:
Serving and giving
Which is not true about giving?
The minimum you should give is 25% of your income
Which of the following is not part of power over purchase when making a significant purchase?
That’s not good enough
Why is there a direct correlation between the number of hours you watch TV and the amount of
money you spend?
Advertising
What concept is best explained by the statement, “Money spent here cannot be spent there”?
Opportunity cost
