Personal Finance
Taxes & Financial Services
Investing
Credit
Insurance & Estate Planning
100
What should you always do when you begin to allocate your monthly paycheck?
Pay Yourself First!
100
Name an advantage to online banking
Easy to pay bills, easy to keep track of charges on your account.
100
How much should you have set aside in an emergency fund?
$1000
100
Give an example of Open and Closed-Ended Credit and explain the difference between Revolving Credit and Open Credit.
[Open:] A credit card [Closed:] A loan [There is no difference, revolving and open-ended credit are the same thing.]
100
Name the four types of insurance that you must have.
Home, Auto, Health, and Life
200
Name one short, intermediate, and long term goal.
Saving an emergency fund, saving for a down payment on a house/car, Wanting to clear your debts
200
What is your W-2 and when should you get it?
The form showing how much money you've made over the past year, also showing how much you have payed in taxes. This form should be given to you by January 31st of the new year.
200
What is the Time Value of Money?
How long it takes invested money to grow at a certain rate
200
What is the number one cause of financial troubles among families today?
Impulse Buying
200
Who is the person charged with carrying out your will when you pass away?
The Executor of the Will
300
Name the difference between a job and a career.
Job's are short term employment options with little or no opportunity for growth, careers are essentialy jobs that you "go to college for", or high paying jobs with many opportunities for advancement.
300
Name three things you can exempt on your taxes.
Children, business expenses, child care, etc.
300
Explain the concept of diversification and why it's important to be diversified.
Investing your money wisely in many differenct areas of return such as stocks, CD's, bonds, and savings accounts. This creates a saftey net in case one of your areas of investment crashes.
300
Name the 5 C's of Credit Worthiness.
Character, Capacity, Collateral, Conditions, and Capital
300
Is it required to have auto insurance and health insurance?
Only auto insurance is required by law, but most hospitals won't treat you without insurance unless it is an emergency.
400
Describe what it means to be insolvent.
When your the amount of your liabilities exceeds the amount of your assets. Or a 'negative' net worth.
400
Name and describe the three types of writing a check
[Restrictive:] For Deposit Only [Special:] For Joe Smith [Blank:] Just Signing the Check
400
Name types of investments in the 3-Level Pyramid of Return vs. Risk.
[Top:] Stocks [Middle:] CD's and Mutual Funds [Bottom:] Savings accounts
400
Name and breifly describe the three types of bankruptcy
[Chapter 7:] Declares and clears most of your debts, exemptions inlcude student loans and domestic debts (child support and alimony) [Chapter 11:] The Chapter 7 for businesses [Chapter 13:] Where all of your debts are frozen and you are given a chance to re-organize and re-negotiate your debts.
400
Describe the difference between your premium and your deductible.
Your premium is the cost you pay to be covered by the insurance policy. Your deductible is the amount you pay before an insurance company starts covering the cost of accidents covered by your insurance.
500
Name two fixed and two variable expenses
[Fixed:]Rent, Water/Electric, Car Payments etc. [Variable:] Monthly Gas Bill, Medical/Emergency expenses, Food and Grocery expenses etc.
500
Explain the FDIC and what it provides for normal people.
The FDIC is the Federal Deposit Insurance Corporation. It provides a certain amount of insurance for accounts, currently $250,000, in the event that the banking system should crash.
500
Explain what happens when a company decides to split stock and why they would decide to do so.
Spliting stock is a way to keep the value of the shares of a company under control. When a stock split happens, a ratio is released stating that now, for every one share you have, you gain a set amount of new shares. This is always accompanied by a cut in the value of the stocks.
500
Explain the 20/10 rule and tell why it is important.
[20 Refers to:] Your total annual household debt, excluding your mortgage, should not exceed 20% of your annual take home income [10 Refers to:] Your total monthly debt payments, excluding your mortgage payments, should not exceed 10% of your net income
500
Name something your home insurance would cover if it happend to your house. How much would you typically get from your insurance company to replace your house and the things inside of it?
Tornadoes, fires or hurricanes are all covered (depending on where you live of course) You typically get somewhere between $200,000 - $300,000 (depending on your home value) to replace your home and another $50,000 - $100,000 to replace the things inside of it.
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