Money Mangament 1
What is Net worth, and how do you calculate it?
The total value of a person's financial assets minus their liabilities (obligations)
Total Assets- Total Liabilities
What is the abbreviation for automatic teller machine
ATM
Money or other items of value that a person owns
Asset
A check written against an account with insufficient funds to cover it
Bad Check
What does a forged check mean?
A check signed by someone else by someone else other than who is specified on the check without that person's permission.
Name the two type of financial goals and explain each one.
Long term financial goal: major purchases that require extensive saving; examples include home ownership, education, retirement, and investments
Short term financial goal: having funds to buy things that require money above what is normally allowed by budget; examples include emergencies, vacations, social events, automobile and home repairs, gifts
Not for profit financial institution that is owned entirely by it's members
Credit Union
You bought a car, as soon as you leave the dealership with your new car the car starts to?
Depreciate
a written order instructing the bank to pay a certain amount of money to another person or place; must contain date, payee, amount, and signature.
Check
The process of comparing the bank balance and check register so that they show the same amounts
Reconciling
what is the difference between variable costs and fixed costs
Variable Costs: anticipated expenses that are expected, but may vary in amount each amount; examples include video rentals, restaurant meals, and sports activities. Expenses that fluctuate based on the amount of products produced.
Fixed Costs: anticipated expenses that are the same each month and usually require payment around the same time each month; examples include house payments, rent payments and car payments.
Independent federal agency that supervises federal credit unions and insures depositor's money in credit unions
National Credit Union Association
a payment method used to electronically deposit your paycheck into your bank account
Direct Deposit
Amount of money paid by a borrower to a lender in exchange for the use of money that has been loaned
Interest
what type of expense and cost is Rent?
Anticipated Expense, Fixed
Explain what collateral is
an item of value pledged as a guarantee for payment of a loan which can be repossessed by the lender if the loan is not paid back
Allows you to cover checks or withdrawals up to a specified amount if you have insufficient funds in the account
Overdraft Protection
Money received for work; corporate earnings
Income
check that can be further endorsed
Blank Endorsement
check that it is more than six months old. It may not longer be honored by the bank.
Stale Check
What does SMART Goals stand for?
Specific, Measurable, Achievable, Relevant/Realistic, Time-bound
a financial institution that handles money, including keeping it for saving commercial purposes; a for profit company that is owned by investors
Bank
What is an unanticipated expense?
Expenses that are not paid every month and cannot always be planned; examples include car repairs, medical bills, loss from theft, and loss from natural disasters.
Blank Endorsement
Special Endorsement
Restrictive Endorsement
What does NSF stand for?
Non-Sufficient Funds