Posted by & filed under Personal Finance, Personal Finance 2e (Vickie Bajtelsmit).

This article talks about the importance of managing cash flows. Managing cash flow is not just important for small businesses but individuals as well. The article addresses the mixed blessing of Fintech’s impact on cash flow management. People with positive cash flows and financial savvy are using the financial tools to their advantage, whereas others are benefitting the bottom line of financial companies. The article also deals with 5 different strategies to manage one’s cash flow.



Multiple Choice Questions:

  • Cash flow management in recent years

Has become less complex

Has become more complex

Has become dependent on dollar bill transactions

Has relied less on technology and more on human interaction


A person who maintains a sizable checking or savings account is

  • Is more likely to set up auto bill payments
  • Less likely to set up auto bill payments
  • More likely to invest excess cash
  • Is more likely to worry about their cash flow
  • Maintaining cash flow

Is considered as important by many people as accomplishing a targeted goal

Is considered less glamorous than a targeted financial goal

Is likely to resonate more with people

Feels more tangible to many folks

  • Thoughtful, discretionary spending which is possible through managing a cash flow leads to

A person being more stressed about purchases

A person being more in control of their finances and much happier

A person feeling more confident, but realizing that they may not reach their long-term goals

A person feeling less motivated to fund their long-term goals since they are too busy managing their cash flows

  • The most important aspect of cash flow management plan is

To make sure that you have one

To make sure that it is realistic

To make sure that you are going to implement it

To make sure that you have all financial scenarios built into it.


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