1. During sluggish economic times, the federal government’s budgeting priority is to borrow so it can spend much more money than it takes in. What happens to families that try that, and why?

2. What are your three most important personal values? Give an example of how each of those values might influence your financial plans.

3. Cash Flow. College students often have little income and many expenses. Does this reduce or increase the importance of completing a cash-flow statement on a monthly basis? Why?

4. Of the financial ratios described in this chapter, which two might be most revealing for the typical college student? Which two might be the most revealing for a retiree?

5. Do you have a budget? Why or why not? What do you think are the major reasons why people do not make formal written budgets?

6. What can a person do to control spending to better achieve financial success?

7. What is the biggest budget-related mistake that you have made? What would you do differently now?

8. Areas of financial decision making change over one’s life-cycle. Based on the information provided in Figure on page 76 contrast your own areas of concern with those of your parents.