Con Ed T/F Chapter 9

With good planning, financially sound families can live beyond their means
Click the card to flip 👆
1 / 52
Terms in this set (52)
With good planning, financially sound families can live beyond their means
False
One benefit of financial planning is that is can reduce or eliminate the need to use credit
True
Financially sound families may choose to postpone some purchases
True
If you charged $2000 in vacation expenses on your credit card, your net worth would increase.
False
There is a standard set of expense categories that should be used when analyzing spending habits
False
A budget is a statement of what you own and what you owe
False
Before developing a budget, you should translate general goals into specific goals that can be measured
True
A family's daily living expenses decrease as more children are born
False
An aging couple can typically expect to see an increase in their health insurance expenses
True
Usually, a business makes decisions about opportunity costs based on the effect in productivity
True
Software can be used to print checksTrueA financial software program that is more expensive than others might be the best optiontrueeach time an updated version of a financial software package is released, current users must purchase it at full priceFalseusing software to track your finances at a very detailed level may be a waste of timeTrueafter buying financial software, a consumer should learn should learn and practice all of its features before starting to actually use itfalseusers of online banking services may be able to schedule bill payments to be made at a future date.truea disadvantage of paying bills online is that payment takes longer to processfalseas long as the user of financial software enter data correctly, math errors are eliminatedtruefree online financial tools can serve as an alternative to buying financial softwaretruesome software companies offer free demos that customers can download and try outtruefinancial software is necessary for organizing and managing personal financesfalsea consumer should consider the cost of financial software before deciding whether to use ittruesome software includes tools to calculate information such as loan payment amounts and payoff datestruecreating a budget involves three main tasks: eliminating income, estimating expenses, and balancing you checkbookfalseallocating money for savings is necessary to reach long-term financial goalstruewhen estimating income, you should be sure to include you savingsfalsewhen estimating expenses, you can use recommendations from financial experts as a guidetruebank statement, receipts, tax forms, and other records can help you identify your past spending habitstruethe term "discretionary expenses" refers to expenses that normally increase or decrease from month to monthfalsethe cost of eating out at a restaurant is a discretionary expensetruethe budget surplus can be added to the amount budgeted for savingstruefixed expenses are often the easiest expenses to cutfalsea budget should be revised no more than once a yearfalsefinancial records can help you document you income and assets when applying for a loantruerecords of income and expenses are essential for effective budgetingtrueATM receipts should be kept for three yearsfalseutility bills should be kept for six yearsfalsea person who owns a home should keep real estate and property tax documents until one year past the sale of the hometruea home safe is the most secure place to store important documentsfalsebackup discs of electronic financial records should be stored near the computerfalsewhen you move, you should provide your new address to your previous post officetruecredit card statements should be kept permanentlyfalsepeople must have special education and skills in order to offer financial servicesfalsefinancial professionals may be associate with a financial institution or they may work independentlytrueall financial adivisors have passes a rigorous examinationfalsea certified financial planner is a chartered financial consultant who has completed additional studies in investment and financial planning topicsfalseinsurance agents and CPA's must be licensed by the state in which they practicetruea fee is a percentage of the dollar amount of investment products sold to the clientfalsefamily members and friends are a good source of recommendations when choosing a financial professionaltrueyou should investigate whether an advisor who advertises "free" services actually works on commissiontrueyou should avoid hiring a financial advisor who refuses to provide information about credentials, services, and fees in writingtrueyour financial professional should set your financial goals and make your financial decisionsfalse