Ch. 1-2
A system by which goods and services are produced and distributed
Economy
What is a Budget?
A plan for your money
DAILY DOUBLE:
What does PhD stand for?
Doctor of Philosophy
The promotion of a product or service by identifying it with distinct characteristics (usually associated with public perception, quality, or effectiveness)
Branding
If you were found at fault for a car accident, you would be considered to be _________.
Liable
Your Resume is your ____________ with an Employer
First Impression
A financial liability, or obligation, owed by one person, the debtor, to another, the creditor is called ______.
Debt
Would a car or truck tend to depreciate in value or appreciate in value over time, and why?
Depreciate
figure it out
A form of federal or state financial aid that does not need to be repaid; typically based on financial need
Grant
To buy an item with credit; paying over time
To Finance or Financing
What type of investment is less risky generally; stocks or bonds? Explain why
Bonds are less risky since they're usually backed in stronger ways (government), although they usually don't grow as much.
Which type of tax usually comes directly out of your paycheck from an employer?
Income Tax
A type of bankruptcy where individuals or businesses can eliminate most of their debts by “liquidating” qualifying assets to repay debts.
Hint: Chapter ????? Bankruptcy
Chapter 7 Bankruptcy
Explain what a Zero-Based Budget is
A cash flow plan that assigns an expense to every dollar of your income, wherein the total income minus the total expenses equals zero.
How often should you fill out the FAFSA?
Once every year
The process of quantifying costs and benefits of a decision
Cost-Benefit Analysis
Which term is described by splitting portfolio investments up between various industries and companies, in order to reduce risk?
Diversification
True or False:
All non-profits are considered to be charities, but not all charities are non-profits.
False
Saving money over time for a large purchase; usually monthly savings
What are two things that credit score can affect your ability to do?
Loans
Insurance
Rent Prices
Credit Cards
Cell Phone Plans
Calculation that measures the profitability of an investment by comparing its final value to its initial cost.
Return on Investment
A term that is defined by the difference between the wholesale price and retail price
Markup
What term describes the type of coverage in an insurance agreement?
Policy
What does IRS stand for?
Internal Revenue Service
DAILY ADDITIONAL 300
Explain the concept of Compound Interest
Interest paid on interest previously earned
In what order and how does the Debt Avalanche method recommend going about paying off loans?
Highest to Lowest Interest Rates
What are two of the three things that the FAFSA can help you apply for?
Work Studies
Financial Aid (Scholarships/Grants)
Student Loans
Retail store where people sell items and the owner of the shop gets a percentage of the sale
Consignment Shop
Which type of Retirement Account uses post-tax dollars, and is usually managed by your employer.
Roth 401(k)
Which tax form indicates to an employer an employee’s tax situation, so that employers can withhold the correct amount of income tax from your paycheck.
W-4 Form
Name Ramsey's Five Foundations IN ORDER
1. Setup a $500 Emergency Fund
2. Get outta debt
3. Pay for a car with cash
4. Pay for college with cash
5. Build wealth and Give wealth
What are the "Four Financial Walls?
Food
Shelter
Utilities
Transportation
What does FAFSA stand for?
The Free Application for Federal Student Aid
What is one reason we discussed that smaller businesses have to sell product at higher prices compared to their wholesale price?
Less inventory means less opportunity to save $ by buying in bulk
Less space means saving on things like payroll & mortgage
Less sales volume means it’s harder to meet operating costs
Less sales volume also means that markup is higher to make profit
What is a Growth Stock Mutual Fund?
A fund in which you go in on stocks with other investors, that being a mutual fund.
ALSO KEY: Specifically, these invest into companies that invest their money more into their own growth rather than into dividends.
Explain the difference between a non-profit and a charity.
A non-profit organization is more of a tax-specific title for any given business, regardless of their purpose, while charities are aimed at helping others, or having some sort of "charitable" purpose.