Foundations in Personal Finance Chapter 3 Terms
Quiz yourself by thinking what should be in
each of the black spaces below before clicking
on it to display the answer.
Help!
|
|
||||
|---|---|---|---|---|---|
| Budget | A cash flow plan. Every dollar you make is assigned to a specific category / expense at the beginning of each month or pay period.
🗑
|
||||
| Cash Flow Statement | A summary that shows total income and spending for a given time period
🗑
|
||||
| Carbon Check | Checks that have a second copy behind them made of special paper which makes a copy of each check as you write them.
🗑
|
||||
| Envelope System | A series of envelopes, divided into pre-determined categories; works great for managing spending on things that don't normally have a fixed monthly expense, like eating out, entertainment and buying clothes
🗑
|
||||
| Impulse Purchase | To buy an item without thinking about it.
🗑
|
||||
| Overdraft | Occurs when money is withdrawn from a bank account and the available balance goes below zero; a sign of crisis living and lazy money habits
🗑
|
||||
| Reconcile | To match your bank statement with your checkbook, preferably within 72 hours of receiving the statement.
🗑
|
||||
| Zero- based budget | Cash flow plan that assigns an expense to every dollar of one's income: (total income) - (total expenses) = zero; best method of budgeting
🗑
|
||||
| ATM | Automated Teller Machine card which allows you to make transactions in Automated Teller Machines.
🗑
|
||||
| Currency | Another name for Money
🗑
|
||||
| Debit Card | A type of card (often backed up by a major credit card company) that is issued by a bank and used to make purchases. Unlike a credit card, the money comes directly out of the user's checking account. (Also called a "Check Card".)
🗑
|
||||
| Discipline | Self-control used in directing behavior. The key to wealth building is being consistent (self-disciplined) over time.
🗑
|
||||
| Persistent | Refusing to give up.
🗑
|
||||
| Hoarding | Collecting unneeded items or much more than necessary and then guarding them.
🗑
|
||||
| Checking and Savings | Two accounts that should be kept separate in order to prevent "dipping" into your savings" and to alert you that you've reached your spending limit
🗑
|
||||
| Fixed Expenses | Costs (expenses) that do not change from month to month
🗑
|
||||
| Variable Expenses | Expenses that can change each month like money spent on eating out or entertainment.
🗑
|
||||
| withdraw | to take money out of your bank account
🗑
|
||||
| Income | Money earned from working and investments.
🗑
|
||||
| Compound Interest | Interest paid on interest previously earned; credited daily, monthly, quarterly or semiannually.
🗑
|
||||
| Emergency Fund | Five hundred dollars in readily available cash to be used only in the event of an emergency; the goal of the First Foundation.
🗑
|
||||
| Interest Rate | Percentage paid to a le4nder for the use of borrowed money (in debt); percentage earned on invested principal (in investing).
🗑
|
||||
| Five Foundations | The five steps recommended by Dave Ramsey to achieve to financial success.
🗑
|
||||
| Sinking Fund | Saving money over time for a large purchase; divide the total amount of money needed by the number of months (when the money is needed)
🗑
|
||||
| Foundations 1 | Save a $500 emergency fund.
🗑
|
||||
| Foundations 2 | Get out of debt.
🗑
|
||||
| Foundations 3 | Pay Cash For car
🗑
|
||||
| Foundations 4 | Pay Cash for college
🗑
|
||||
| Foundation 5 | Build Wealth and Give
🗑
|
||||
| Three things to save for: | Emergency fund, Purchases, and Wealth Building.
🗑
|
||||
| Emergency | Unexpected life events that will happen and cost money to fix.
🗑
|
||||
| Inflation | Inflation is a persistent rise in the price of goods and services over a period of time or the persistent decline in purchasing power of money.
🗑
|
||||
| Interest Building Account | an account that earns interest on the balance available in the account; An account that pays you interest.
🗑
|
||||
| Principal | The original amount borrowed
🗑
|
Review the information in the table. When you are ready to quiz yourself you can hide individual columns or the entire table. Then you can click on the empty cells to reveal the answer. Try to recall what will be displayed before clicking the empty cell.
To hide a column, click on the column name.
To hide the entire table, click on the "Hide All" button.
You may also shuffle the rows of the table by clicking on the "Shuffle" button.
Or sort by any of the columns using the down arrow next to any column heading.
If you know all the data on any row, you can temporarily remove it by tapping the trash can to the right of the row.
To hide a column, click on the column name.
To hide the entire table, click on the "Hide All" button.
You may also shuffle the rows of the table by clicking on the "Shuffle" button.
Or sort by any of the columns using the down arrow next to any column heading.
If you know all the data on any row, you can temporarily remove it by tapping the trash can to the right of the row.
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
Created by:
fcswatsons
Popular Finance sets