Personal Finance Chapter 2

non-sufficient funds (insufficient) What is the fee for an overdrawn account called?
loan which term is NOT associated with balancing a checking account?
– reconcile- deposit- withdrawal which terms ARE associated with balancing a checking account?
if you have extra money left at the end of the month, your budget was successful Which of the following is NOT true of a zero-based budget?
– The money you spend should equal the money you earn- Use envelopes for categories in which you tend to overspend-You spend every dollar on paper before the month begins Which of the following ARE true about a zero-based budget?
3 months On average, how long will it take before your budget begins to work effectively?
once a month How often should you balance your checking account?
negative Many Americans have a _______ savings rate, meaning they spend more than they make.
True True or False: Another name for a budget is a cash flow plan.
Budget In order to effectively manage money, you need a:
Food If you are struggling financially and are behind on your bills, what should you budget first?
– Fear of what they may find- A budget has been used to abuse them- They never had a budget that really worked Which is a reason why people avoid making a budget?
monthly cash flow form used to do a budget
irregular income form used by persons earning an inconsistent monthly income
reconcilation process used to determine if the balance in your checking registry matches the balance reported on the bank statement
duplicate (carbon) checks helps people who forget to record checks in their register after writing them
crisis Bounced checks are a sign of ______ living.
month A written budget should be done every
– fixed expenses- variable expenses- money to blow Your budget should include:
lead to an increase in arguments Doing a budget does NOT

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