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This low-risk financial instrument stands for Guaranteed Investment Certificate and guarantees a fixed interest rate from the bank
What is a GIC?
This is the term for your take-home pay after taxes and mandatory deductions are subtracted from your gross income
What is Net Pay?
In the simple interest formula I = Prt, the variable P stands for this initial sum of money deposited or borrowed
What is the Principal?
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A high school senior buys a $3.50 Monster Energy drink every school day (20 school days per month) during 1st period. Over 10 months of school (200 days), calculate how much total money he spends on energy drinks instead of putting it into his truck fund
Answer: What is $700.00?
Buying generic brands, turning down the thermostat, making a shopping list, and walking instead of driving are examples of this major approach to having more money
What is Spending Less?
Rent, car insurance, and student loan payments belong to this category of expenses because the dollar amount stays the same every month
What are Fixed (or Regular) Expenses?
If you deposit $700.00 into an account paying 2.85% per year simple interest for 5 years, this is the total interest earned
Answer: What is $99.75?
(I = 700X0.0285X5)
This negative financial outcome occurs when your total monthly expenses are greater than your total monthly income.
What is a Deficit?
Colton works part-time at an auto shop making $15.00/hour for 20 hours a week ($300 gross/week). After 20% in tax deductions, his monthly net pay is $960.00. If his lifted Ford F-250 gas bill is $400/month, he spends $140/month on Monster drinks, and his other expenses are $450/month, determine if his budget has a surplus or deficit, and by how much
What is a $30.00 Deficit?
Calculation: Net Income ($960.00) - Total Expenses ($400 gas + $140 drinks + $450 other = $990.00) = -30
Molly bought a house for $178,000.00 and sold it 10 years later for $349,000.00. This is the percentage increase in her home's value
What is 96.07%?
(349,000 - 178,000)/178,000 X 100)
This positive financial state occurs when your monthly total income exceeds your total monthly expenses
What is a Surplus?
Tyson deposited $1,300.00 at the start of the year and had $1,391.00 at the end of 1 year. This was his account's annual simple interest rate
Answer: What is 7.00%?
In a monthly budget, your total income is $2,540.00 and your total expenses are $2,240.00. Calculate the net balance and state whether it is a surplus or a deficit.
What is a $300.00 Surplus?
Mason wants to buy a used 2015 Chevy Silverado 2500 for $18,000. He puts down $3,000 cash from summer work and borrows the remaining $15,000 on a 3-year simple interest loan at 6.00% annual interest. Calculate his total interest paid and his monthly loan payment
What is $2,700.00 in interest and a $491.67 monthly payment?
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According to standard financial budgeting guidelines, this is the maximum recommended percentage of your net income to spend on housing
What is 35%?
Claira invested $10,000.00 at 1.8% annual simple interest. This is how many years she must wait for her investment to reach $13,000.00 in total value
What is 16.67 years (or 16 years and 8 months)?
A worker earns $1,986.40 in monthly net pay. Their monthly expenses include: Rent ($1,250), Utilities ($150), Insurance ($135), Gas ($70), Clothing ($200), Groceries ($400), and Entertainment ($300). Determine their net balance
What is a $518.60 Deficit?
Is buying a new truck a need or a want for a high school student?
What is a want
Marcel works 40 regular hours at $14.50/hr plus 6 overtime hours at time-and-a-half ($21.75/hr). If his non-rent expenses total $1,590.00, this is the maximum monthly rent he can afford
What is $873.07? (Net monthly income $2,463.07 - $1,590.00 expenses)
You borrow $50.00 from a friend and agree to pay back $70.00 after 6 months ($20 interest). This is the annual simple interest rate you paid
What is 80.00% per annum?
Name two distinct categories of budget adjustments someone can make to eliminate a budget deficit and move into a surplus
What are reducing variable/discretionary expenses (e.g., cutting back on eating out or entertainment) and increasing earnings (e.g., taking on overtime or a 2nd job)