MONEY MANAGEMENT Flashcards
(18 cards)
refers to the process utilized to record and administer an individual’s, household’s, or organization’s finances. The term can also refer more narrowly to investment management and portfolio management.
Money management
Money management refers to the processes of _________, ______, _________, ________, or otherwise overseeing the capital usage of an individual or group.
budgeting, saving, investing, spending,
Money management cycle in order
Earning/income generating stage, spending, saving, investing
suggests an individual spends __% of their after-tax income on essential expenditures. __% of their income should be spent on the things that the person wants. The remaining __% should be saved or invested for future financial goals.
50, 20,30 BUDGET RULE (or 50, 30 ,20 diko na alam kay ms. dont worry multiple choice naman)
Poor money management can lead to ______ __ ____ and ________ ______.
cycles of debt and financial strain.
How do we manage personal finances: Determining one’s net worth is an important element of managing personal finances.
Assess Your Financial Situation
is a good way to set financial priorities like saving for retirement or a vacation and managing debt.
Budget
It is important to choose a ____ that will help you accomplish your financial goals.
Bank
Paying _____ on time is an important part of managing personal finances
Taxes
It is important to take control of debt. Although most people have some kind of debt, such as a car loan or a mortgage, high interest debt can lead to disastrous consequences.
Manage debt
Part of financial management includes a plan to generate income from investments.
Invest your money
Planning for __________ is essential to ensuring a comfortable life in the future.
retirement
A ____ can ensure that property and cash are dispersed to the appropriate heirs.
will
Those who have just started working or in the early part of their respective careers. Typical assets that any individual or household acquires in this stage include their own car or house.
Accumulation phase
Those in this phase already have the necessary assets required of a typical household and have settled most of their outstanding liabilities.
Consolidation phase
Retired individuals belong to this phase. Their main source of income comes from their pension although they also benefit the returns of their existing investments.
Spending phase
This stage focuses on how the individual provides support to the family members, friends, or any charitable institution
Gifting phase
Enumerate the individual life cycle in order
Accumulation phase
Consolidation phase
Spending phase
Gifting phase
