Budgeting
What are the 2 main choices that people have to make regarding their $$?
Spend or Save
Federal/State Income Tax is an example of what type of tax
Progressive
The fee for borrowing money is called what?
Interest
___________________ is a risk management tool
Insurance
What occurs when someone steals your personal information such as your social security number, bank account information or debit/credit card information?
Identity Theft
Give an example of a short-term goal
Graduation, Prom, Anything that can be accomplished in a year or less
You hear on the news that politicians are arguing over a new tax. They say that it is unfair because the tax places the burden of taxation on people who are least able to pay. What type of tax is MOST LIKELY being described?
Regressive
Why do banks charge higher interest than the interest that is earned for depositors?
The amount of $$ you pay the insurance company each month/quarter/year is called a
Premium
What is an action you can take if your are a victim of identity theft?
Report the incident to IdentityTheft.gov
File a police report
Order a credit report (most companies will provide one for free)
Give an example of a fixed cost in a person’s budget
MORTGAGE, CELL PHONE BILL, NETFLIX
Anything that does not change
What is an example of a payroll tax?
FEDERAL/STATE INCOME TAXES, SOCIAL SECURITY TAXES
You took out a loan to buy a car last year. When you bought the car, your interest rate was 3% but after a year, the interest rate went up to 7%. What type of interest rate does this situation BEST describe?
Variable interest
a request for payment for your losses with an insurance company is called a ________________
claim
You get a text from an unknown number telling you that your Netflix account payment can’t be processed and that your account will be shut down in 2 days unless you click the link to login and verify your payment information. What type of fraud is this MOST LIKELY describing?
Phishing
Give an example of a variable cost in a person’s budget
GAS FOR CAR, GROCERIES, UTILITIES
Any cost that changes
Who/which groups do progressive taxes hurt the most?
Higher income earners
Which financial asset has the lowest risk and the lowest return?
Savings Account
A flood caused water damage to your home (you do not own this home). All of your electronics were destroyed. What type of insurance should you have in order to receive $$ to replace your electronics?
Renter's Insurance
After Christmas, you and your family clean the house and put up all of your decorations. The next day, you notice that the trash cans on the curb by the house seem to have been tampered with. What type of fraud is this MOST LIKELY describing?
Dumpster Diving
Creating a budget is a way to make rational decisions. What are the 4 steps in creating a rational decision?
1. Define problem
2. list solutions
3. evaluate each solution
4. Decide!
Oftentimes, proportional taxes are _________________ in their effect.
Regressive
Alexis is investing in a tax-deferred retirement account. She puts $1,000 into this account in January of 2022. At the end of the year, she can count this money off her taxes. One day, when she retires, she can take the money out but will have to pay taxes at that time. What type of investment is this?
Traditional IRA
damage by fire, theft, or storm to a vehicle is covered by what type of insurance?
Comprehensive Automobile Insurance
After Thanksgiving, you and your family went “Black Friday” shopping to get some good deals!! You go back and forth around Newnan to your favorite stores and finally, stop to put gas in your car. A few days later, you notice several erroneous charges on your credit card. What type of fraud is this MOST LIKELY describing
Skimming