|Name: _________________________||Period: ___________________|
This test consists of 5 short answer questions, 10 short essay questions, and 1 (of 3) essay topics.
Short Answer Questions
1. How should people reduce spending?
2. Which perspective is the notion of "keeping up with the neighbors" part of?
3. Earning, saving, and spending money are part of which perspective?
4. People strive to buy and earn more than they need to live at the peak of their fulfillment curve due to which perspective of money?
5. The charts shown in the book for single people and couples are meant to be used how?
Short Essay Questions
1. Whenever people spend money, what more valuable commodity are they also spending?
2. What are some examples of recreational expense categories?
3. What do the two parts of Step 2 allow program participants to track?
4. Why do many people give up on their dreams early in life?
5. Why does the result from the first part of Step 2 sometimes prompt participants to seek a lower-paying job?
6. What are the three perspectives of money the authors ask program participants to reject? Include brief descriptions.
7. Why is it beneficial to be specific with categories, rather than more general?
8. What should program participants do, rather than create a budget?
9. What are some of the not-so-obvious expenses related to a person's work?
10. For Step 4, what is the third question program participants should ask, regarding every expense on their chart? What does this question prompt people to do?
Write an essay for ONE of the following topics:
Essay Topic 1
Define the crossover point and its relationship to retirement. Why is the crossover point central to this financial program? What options are available to a person once they reach their crossover point?
Essay Topic 2
What, according to the authors, is the difference between frugality and aprovechar? Are there some tips for saving money in the book that few people would be likely to follow? (For example, would most people ever consider selling their home and moving into a motor home, in order to save money?)
Essay Topic 3
After determining how much money they have ever made and after determining net worth, why do some program participants feel guilty? What advice do the authors offer, for overcoming this guilt? List at least three ways in which success in the financial program would offset guilt.
This section contains 739 words
(approx. 3 pages at 300 words per page)