Spending Plans
Helping track income and expenses, leading to long-term financial security and wealth is called a
Spending Plan
How do users of a credit union differ from users of a commercial bank?
they have a common bond / membership requirements
On interest earning accounts, should you look for high or low interest rates?
high
A statement of financial position looks at what two categories?
Assets and Liabilities
Rent is what type of expense? (Fixed /contractual OR variable /flexible)
Fixed/contractual
What is the first step that should be completed when creating a spending plan?
Track current income & expenses
How many bones are in the average adult human body?
206
Which type of account provides quick access to funds for transactions through writing checks, using a debit card, or withdrawing cash
Checking account
What equation calculates net worth
Assets-Liabilities
What is the most common letter in the English alphabet?
E
What is the most common birthday?
September 9th
Funds deposited in a federally insured account (FDIC) are protected against loss for up to:
$250,000
What animals are Tom & Jerry?
Cat & Mouse
Who is the actor that plays Michael Scott in The Office?
Steve Carrell
What does it mean to “pay yourself first?”
put aside pre-set amount of money to savings
What should you do if expenses exceed income on a spending plan?
Decrease expenses or increase income
What is the KEY difference between commercial banks and credit unions relating to PROFITS
Banks are for profit, Credit Unions are non-profits
The FDIC and NCUA both provide insurance of deposits up to a certain amount. Which one provides insurance for Banks and which one provides insurance for Credit Unions?
FDIC- Banks
NCUA - Credit Unions
Indicates the monetary value of all possessions that a person or household owns, minus the total amounts owed to others
Net worth OR wealth
On the income and expense statement, what do you do to the income amount to arrive at net income?
Subtract expenses
What type of control system would be best for someone who prefers using and carrying cash with them?
Envelope System
What is the difference between a debit card and a credit card?
debit withdrawals money from designated account to make payments instead of making purchases on credit
Which type of banking includes apps that allow online banking access from devices such as smartphones
Mobile Banking
The 3 types of assets on a statement of financial position include ..
Monetary, Tangible, and Investment
Is your Gross Income or Net Income recorded on the income section of this statement? Explain.
Gross Income because the taxes will be taken out in the expense section