Deca Pfl Exam

In order to get spending under control, a person should fist - Answer-Create a budget of current income and expenses Comparison shopping for a car is necessary because - Answer-The price for the car can vary a great deal Financial planners generally stress the importance of starting to save and invest early because - Answer-Of the power of compounding and appreciation An important feature of a good financial goal is that the goal - Answer-Has a specific time frame Purchasing power decreases and it costs more money to buy goods when there is - AnswerInflation What strategy can help a person achieve her goal to buy a house? - Answer-Following a budget that allows for savings A college student has to live on a tight budget. Before making a decision to buy the newest cell phone, which question should he ask himself first? - Answer-Is the new cell phone a need or want? Which of the following quotes is sound financial advice? - Answer-"A penny saved is a penny earned." Fixed expenses include - Answer-Rent Mandatory deductions from a person's paycheck include - Answer-Federal withholding tax and FICA When should a person begin contributing to a retirement plan? - Answer-As young as possible Which of the following is the source of income for most people aged 20-35? - AnswerWages/salary The U.S. government agency responsible for the collection and enforcement of federal taxes is known as - Answer-U.S. Internal Revenue Service (IRS) When a person has a balanced budget that includes savings then - Answer-Total expenses + savings = total income Why do financial advisors recommend that a person save at least 10% of each paycheck? - Answer-To build wealth