Budgeting
Give one example of a fixed cost AND one example of a variable cost.
Fixed: Rent, insurance, car payment
Variable: Groceries, entertainment, car maintenance, leisure, utilities
What is bartering?
Trading goods and services.
Negotiating.
What is credit?
Borrowing money with the promise of paying it back at a later date.
APR stands for...
Annual Percentage Rate
What are the most common term lengths for auto loans?
48 Months
60 Months
72 Months
50% budget to needs
30% budget to wants
20% budget to savings
Give one example of a financial service provider.
Banks
Credit Unions
Financial Advisors
Wealth Managers
Accountants
Investment Banks
Insurance Companies
Give an example of a secured loan.
Auto Loan
Mortgage
Business Loan
P x R x T = ???
Simple Interest
Give one positive and one negative of buying a new car.
Positive: asset acquisition, resale value, ownership, having a car.
Negative: higher costs, long-term maintenance & upkeep costs
Name an event that may cause a need for an emergency savings fund?
Inflation
Unemployment
Personal Emergencies
Major Life Changes
Natural Disaster
What is one way banks make money?
Investments
Interest
Any Account Fees
Paying the minimum required amount on a credit card statement to avoid late charges. Can significantly build up debt.
Describe compound interest.
Interest earned on top of previously earned interest. A key investing tool.
What is the first step in the home-buying process?
Loan Pre-Approval
What are 3 examples of investments?
Stocks
Bonds
Real Estate
Education
Crypto
Savings
Commodities
When writing a check, what information goes on the "Memo" line?
The reason for writing the check.
Describe one feature of a subsidized loan.
Only for undergraduates.
Does not accrue interest until after graduation.
Lower loan limits.
The common cliche used to describe diversifying investments is...
"Don't put all your eggs in one basket."
What are 2 costs associated with renting an apartment?
Rent, utilities, security deposit, groceries & other necessities.
Give an example of a FULL financial SMART goal.
Example: "Save $40,000 for a standard down payment on a 2-unit property/house in Buffalo/KenTon area by the end of 2028."
Name 2 features of online web banking.
Balance Check
Transfer Funds
Pay Bills
View Statements
Send Money
What are the 5 C's of Credit?
Capacity
Collateral
Conditions
Character
Capital
Describe what a mutual fund is.
An investment fund managed by an investment company that pools investors’ money and invests that money in a portfolio.
What are Lemon Laws?
Lemon Laws are intended to provide those who purchase (or lease) new cars with protections. If your car does not conform with its warranty and the manufacturer or your dealer cannot repair it within what is considered a reasonable number of attempts, you are entitled to either a full refund or a new replacement vehicle comparable to the original.