SFL 260 Final Exam Comprehensive Review

SFL 260 Final Exam Comprehensive Review People who are good at budgeting figure out ways to make saving easier and spending more difficult. Select all the ways that this can be accomplished: - Set up an automatic transfer from checking to savings each month. Determine a maximum amount that can be spent by either spouse without first discussing the purchase Don't grocery shop hungry An emergency fund becomes even more important for financial well-being after a home is purchased. Why? - If a family runs into financial trouble, and they don't have the money to pay their monthly mortgage, they stand to lose their home and any equity in the home. Home ownership increases the likelihood that a person will face large unexpected expenses. Homes can be expensive to maintain. What was the 2017 minimum down payment requirement for a standard FHA loan? - 3.5% Which of the following principles is the big picture take-away from the Cash Management module? - Your liquid monetary assets should be kept in an account that takes on an appropriate amount of risk Risk and return go together. Cash isn't very risky but has next to no return. In fact the cash in your wallet is losing value due to inflation. Which option could you pick to take on the smallest amount of risk and still earn some interest? - certificates of deposit In the Dave Ramsey Video we watched for the budgeting discussion, Dave used all of the following analogies to help us understand budgeting except which of the following? - Your budget is the dam on the river of your cash flow. Select each statement that is true about setting goals. - Depending on what a person is trying to accomplish a very different approach might be the right way to go. If you don't know where you want to go, then it doesn't matter which path you take. According to the rule of thumb given in the Apply: Calculate Monthly Mortgage Payment assignment, what is the maximum monthly mortgage payment a family making $120,000 a year should consider? - $2,500 What makes a liquid asset "liquid"? - You can use it immediately if needed Which of the following is important to teach our children to help them become responsible financial stewards? - How to create a budget Hard work Obtaining as much education as possible Saving and sacrificing for what they need and want Which of the following is a good example of a couple effectively implementing the practice of "MAD" money? - Dan and Rachel each have $50 out of the monthly budget that they can spend however they want, they don't need to discuss beforehand how that money will be spent on.