Personal Financial Management - Chapter 7 Flashcards Preview

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Flashcards in Personal Financial Management - Chapter 7 Deck (29)
0

Active

Money - it's always moving and can be utilized in many ways

1

ATM card

Automated teller card which allows you to make transactions in ATMs

2

Budget (2)

Plan for making and spending money

Another name for cash flow plan

3

Carbon checks

Checks that have a second copy behind them made of special paper which makes a copy of each check as you write them

4

Currency

Money

5

Debit card

A bank card that automatically deducts the amount of a purchase from the checking account of the cardholder

6

Discipline

Training to improve strength or self control

7

Envelope system (5)

A control system where an individual places the actual budgeted amount of cash into the specific envelope labeled for the expense

Breakdown of savings form

$2,000 in savings, then break it down

Consumer equity = what you own - what you owe

Can have negative equity

8

Hoarding

Reserving more than necessary

9

Impulse purchase

To buy an item without thinking about it

10

Persistent (2)

Not giving up

Continuing on

11

Pro-active

Controlling a situation by causing something to happen rather than waiting to respond to it after it happens - takes strong initiative

12

Procrastinate (2)

To delay

Put off until later

13

Reconcile (3)

To bring back into agreement

Process used to determine if the balance in your checking registry makes the balance reported on the bank statement

Reconcile your bank statement within 72 hours of reconciling it

14

Zero-based budget

Cash flow plan that assigns an expense to every dollar of one's income, where in the total income minus the total expenses = zero

15

Irregular income form

Form used by persons earning an inconsistent monthly income

16

Monthly cash flow form

Form used to do a budget

17

Duplicate checks

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

18

You do/don't pay interest on debit card purchases?

You DONT pay interest on debit card purchases

19

How often does a budget change?

Every month

20

People who don't earn a consistent salary monthly, are the ones...

who have a budget more than anyone

21

Balanced checks are a sign of...

Crisis living

22

Your monthly budget should include

Fixed expenses

23

What would account for a difference in balances in your checkbook registry and bank statement after reconciling the two? (3)

An error or omission

outstanding checks that didn't clear

Deposits that didn't post

24

How to do a budget (3)

Makes your $ go farther

Shows if you're overspending

Removes guilt and shame sometimes associated with purchases

25

Reasons people hate budgets (4)

It has a straight jacket connotation

Has been used to abuse them

Never had a budget that worked

Paralysis from fear of what they might find

26

Cash flow plans don't work when... (4)

You leave things out

Over complicate your plan

Don't do it

Don't live on it

27

What is the most easiest and most powerful plan?

Zero-based budget plan using the envelope system

28

How long does it take to get the envelope system all figured out?

3-4 months