|Name: _________________________||Period: ___________________|
This test consists of 5 short answer questions, 10 short essay questions, and 1 (of 3) essay topics.
Short Answer Questions
1. What does Question 2 help people to figure out?
2. What is Step 1, Part 1 of the program?
3. What two addictions are compared in Chapter 3?
4. Why do people buy more than they need?
5. What is the term for the unnecessary things, activities, and noise in our lives?
Short Essay Questions
1. What is the first part of Step 1? What is its purpose?
2. For Step 4, what is the first question program participants should ask, regarding every expense on their chart? How does the chart answer the question?
3. Why is Step 4 considered the heart of the program?
4. Why does the result from the first part of Step 2 sometimes prompt participants to seek a lower-paying job?
5. What are some problems associated with "business as usual?"
6. What should program participants do about their smaller, sometimes overlooked miscellaneous expenses?
7. What perspective of money do the authors endorse? Why?
8. Whenever people spend money, what more valuable commodity are they also spending?
9. What are some examples of recreational expense categories?
10. Why is it beneficial to be specific with categories, rather than more general?
Write an essay for ONE of the following topics:
Essay Topic 1
Why should people try their best to get out of debt, when credit cards are readily available? Why should people save a six-month cushion? What is the real meaning of financial independence?
Essay Topic 2
Expand upon the authors' comparison between budgeting and dieting. Why are honest record-keeping and frugality better tools for managing finances than a budget? What terms would parallel record keeping and frugality, in terms of managing food intake?
Essay Topic 3
Why do the authors encourage program participants to calculate their real wage? Based on real wage, why should people sometimes consider changing to a lower-paying job? How does this jibe with the authors' advice elsewhere in the book, to maximize income?
This section contains 738 words
(approx. 3 pages at 300 words per page)