Unit 2 Study Guide: Personal Finance

1. What are the 3 areas your spending options need to focus on?

2. What is the first step in effective money management?

3. What are some examples of financial documents?

4. How can an organized system of financial documents help you with your financial well-being?

5. What are 3 ways you can store your financial documents?

6. What is one of the disadvantages of keeping financial documents in home files?

7. How can a personal balance sheet help you?

8. Your personal balance sheet includes:
a.
b.

9. Any items of value that an individual or company owns, including cash, property, personal possessions, and investments, are called:

10. What are the 4 categories of wealth in terms of your personal balance sheet?
a.
b.
c.
d.

11. What is the first step in creating a personal balance sheet?

12. An example of a long-term liability is:

13. An example of a current liability is:

14. The calculation for determining your net worth is:

15. What is market value?

16. What is take-home pay (Net Income)?

17. What is discretionary income?

18. An example of a fixed expense is:

19. An example of a variable expense is:

20. When getting ready to start a new career job, what is a good recommended percentage to estimate what your net income will be?

21. The Consumer Price Index (CPI) is a measure of the changes in prices for commonly purchased goods and services in the United States.

22. What are the 3 saving strategies?

23. If you want to be successful at financial planning, you must have a:

24. What are characteristics of an effective budget?
a.
b.
c.

25. What is an example of a product when it would be beneficial to do comparison shopping?

26. Purchasing items on the spur of the moment is called:

27. One of the disadvantages of direct selling is:

28. A written guarantee from the manufacturer or distributor that states the conditions under which the product can be returned, replaced, or repaired is called a(n):