Overdraft
Occurs when money is withdrawn from a bank account and the balance goes below zero
Zero-Based Budget
A cash flow plan that assigns an expense to every dollar of your income
Envelop System
Series of envelopes that are divided into categories
Impulse purchase
An item that is bought without previous planning or consideration of the long-term effects
Reconcile
The act of matching your bank statement with your checkbook
Budget
...
Fixed
...
Discretionary
...
Cash flow statement
...
Check Register
...
Why is the zero-based budget the best method of budgeting?
Every dollar has a purpose
What are the reasons that cash flow plans sometimes don't work?
Leave things out of the budget, make it too complicated, don't follow the plan
Explain why you should have a cash flow plan?
Relief stress and guilt, helps avoid overdrafts and overspending
What are the various payment options that come with a checking account?
Checks, debit card, and online bill pay
Why should you have both paper and electronic financial records?
References for taxes, accurate balance, aware of fraudulent activity
Explain why its important to develop a personalized financial pan for spending, saving and record keeping.
Everyone has a different spending, saving, organizational strength/ weak
Describe some changes in circumstances that might affect a personal budget?
A change of lose of income
What is the number one cause in divorce in North American today?
Money
How many savings accounts should you have?
As many as you want
What is online bill pay?
Pay your bills online
What is "pay yourself first"?
Put money in your savings account, etc.
What is the easiest method of saving money?
Automatic transfer to your savings account
Can a debit card be used for online purchases?
Yes
What account record has the most current account balance?
Your check book register
What record-keeping features would you expect from your bank?
A monthly statement, checkbook register
What % of Americans are living paycheck to paycheck?
70%
What are the guidelines for budgeting with irregular income?
If you are a business owner
A written budget that if followed will remove what from your life?
Guilty, overspending
What kind of expense is a car repair expense? Groceries? Rent? Eating out?
Intermediate expense, variable, fixed, and discretionary
What are the things that a typical millionaire would not do?
Eat out, carry debt, buy brand new cars
What items should your monthly budget include?
Variable, fixed and discretionary
What are the consequences of over drafting your checking account?
You are in debt, fees