| Why should students learn about personal finance? | Learning to manage money at this stage can eliminate financial mistakes and promote huge financial benefits for the future. |
| What are key components of financial planning? | 1. Write out a detailed plan for accomplishing your goals.2. Replace money myths with money truths.3. Regularly monitor and reassess your financial plan. |
| What best describes how Americans are being outsmarted by banks and other lenders? | Credit is marketed so well that we desire to have it while completely dismissing the fact that interest rates and fees continue to destroy our financial well-being. |
| Personal financial success is primarily the result of? | Managing your money behavior |
| What best explains why income alone does not determine wealth? | How much money a person makes does not dictate his or her spending and saving behavior. |
| What are 3 consequences of spending more money than what you make? | 1. Missed opportunity to save and invest2. Stress3. A cycle of debt |
| 3 True statements | 1. Americans learned to borrow amidst post- WWII prosperity2. After 1970, consumer debt skyrocketed3. As banks made higher profits, they were willing to lend more money to consumers. |
| When it comes to managing money, success is about _____% knowledge and ______% behavior. | 20, 80 |
| The widespread financial insecurity of Americans is primarily because; | The saving rate of Americans is low and many borrow in order to spend more than they earn. |
| What is not a factor in becoming money smart? | Learn how to read your credit card statements. |
| What is NOT a benefit of understanding your own money personality? | Knowing your money personality allows you to excuse excessive spending because it is simply a part of your nature. |
| Why was the use of credit uncommon prior to 1917? | 1. Laws prevented lenders from charging high interest rates.2. Borrowing money was generally not socially acceptable.3. Lending money to others was not profitable. |
| When it comes to personal finance, the math is easy. What’s challenging is managing your _________ | Behavior |
| What is NOT a reason credit is marketed heavily to consumers in the United States? | The use of credit is not socially acceptable in the United States. |
| During the Great Depression, New Deal policy makers came up with mortgage and consumer lending policies that convinced commercial banks that; | Consumer credit was profitable. |
| True financial security is achieved when your money begins to generate an income- your money starts working for you. | True |
| Since you are a teenager, what you do now with money will have little effect on your financial future. | False |
| Most Americans today are wealthy and will have financial security when they retire. | False |
| Most Americans avoid the use of credit when it comes to buying big-ticket items like a car or furniture for their home. | False |
| Learning the language of money is not that important because you will be able to depend on financial planners to organize your money. | False |
| Having debt keeps you from building wealth. | True |
| The credit system today is structured to accommodate a state of uncertain employment and income instability, utilizing high interest rates and fees to turn huge profits. | True |
| Expensive houses and new cars are a true indication of wealth. | False |
| When developing a personal financial plan, one of the first things you should do is assess your current financial situation. This includes your income, assets, and liabilities. | True |
| Everyone should have the same financial plan. A budget that works for one person should be sufficient for everyone. | False |
| Explain why understanding your money personality is important when it comes to developing a money plan that is right for you. | You need to know your money personality so you can budget your money in a way that works for your personality. |
| Review the Chapter 1, Section 2 segment titled, “What’s You Money Personality?” Which of the four student responses most matches your view on money. | Money isn’t everything because I believe that you can still do things even if you do not have money. Money is not the most important thing in the world. |
| Review the sidebar content in Chapter 1, Section 2 titled, “Teen money attitudes shifted with the recent recession.” Write a paragraph summarizing the ways in which teen attitudes toward money, work, and family changed during the recent recession. | Teens attitudes toward money changed to where they know that money is not everything and their parents are trying hard to fix it. |
| Explain how marketing can affect your decisions when it comes to spending money. | If an item is marketed where it sounds like a good deal, you are more likely to buy it. |
| Describe some of the mistakes Americans often make when it comes to money. | They do not have a budget, or they think that you have to have a credit score. |
| Does managing your money well mean that you can not have fun with your money? Explain your answer. | No, you can budget “fun” money when you make your plan. |
| Does the “history of credit and consumerism” segment make you view the use of credit differently than you did before? Explain | Yes, I thought you had to have credit to buy things and now I know that it is a misconception. |
| A person or business that offers loans at extremely high interest rates | loan shark |
| A person or organization that uses a product or service | consumer |
| An obligation of repayment owed by one party to a second party. | debt |
| The granting of a loan and the creation of debt; any form of deferred payment | credit |
| The knowledge and skill set necessary to be an informed consumer and manage finances effectively. | financial literacy |
| A fee paid by a borrower to the lender for the use of borrowed money | interest |
| A system by which goods and services are produced and distributed | economy |
| A debt evidenced by a “note”, which specifies the principal amount, interest rate, and date of repayment | loan |
| A period of temporary economic decline during which trade and industrial activity are reduced; generally identifiedd by a fall in gross domestic product. | recession |
| All of the decisions and activities of an individual or family regarding their money, including spending, saving, budgeting, | Personal finance |
| What do you hope to learn and gain from this class? | I hope to learn everything from this class. I want to go into accounting so personally this class is perfect for me. Plus it will help me in my college accounting class. |
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