Part 1 - 10 short-answer questions worth 7 points each
Part 2 - 1 Take-home essay question analyzing two hypothetical individuals' net income cash flows. Parts 2A and 2B are worth 15 points each. So the take-home part is worth 30 points out of 100.
Part 1 Short-answer questions deal with the following terms and topics (you should know the definitions of them all):
- the difference between wants and needs
- what is a budget?
- what are SMART goals
- what is the difference between a short-term goal and a long-term goal?
- what is the difference between net worth and net income?
- what is earned income?
- what is inflation?
- what has been the average rate of inflation in America since 1926?
- be able to provide examples of good vs bad uses of credit (i.e. debt)
- what is the difference between fixed vs variable expenses?
- What is an emergency fund or rainy day fund?
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