Spending Plans
This is an income and expense statement sometimes referred to as a budget which records both planned and actual income/ expenses over a period of time.
Spending Plan
Borrowing money that you will have to pay back with interest is?
Credit
If liquid saving tools usually have less interest why would you want to save using them?
Incase of an emergency and for day to day purchases.
What year did the War of 1812 start?
1812
These expenses require you to pay for a specific amount of time and are not easy to reduce or cancel. Examples; phone bill, rent, etc.
Contractual (fixed) expense
What is the price paid for using someone else's money? Can be earned or charged
Interest
Account that is used for a fixed period of time and is the least liquid saving tool.
Certificate of Deposit (CD)
Which two teams are in the World Series?
Los Angeles Dodgers and Toronto Blue Jays
If expenses are greater than income then you will have a net.... what?
Net Loss
What corporation/ administration insures up to $250,000 per account? One for credit unions and one for banks.
Federal Deposit Insurance Corporation (FDIC) and National Credit Union Administration (NCUA)
What are the factors of the time value of money?
Amount of money
Length of Time
Interest Rate
What geometric shape is generally used for stop signs?
Octagon
Once a spending plan is developed:
a) It should be continually evaluated & adjusted to meet personal needs and adapt to life changes
b)an individual doesn't need to worry about tracking income or expenses anymore
c) changes are not necessary
d) all of the above
A
What 5 services offered by depository institutions did we discuss?
Transactions/ Saving Tools
Credit
Financial Advice
Safe-Deposit Box
Special Needs payment instruments
What is the minimum amount of liquid assets one should keep as an emergency fund?
3 months (monthly expenses times 3)
What is the capital of North Dakota?
Bismarck
Name each step of a spending plan in order.
1) Track Current Income and Expenses
2) Make/personalize your spending plan
3) Allocate money to each category
4) Implement & Control
5) Evaluate and make adjustments
Name 3 fees that banks may charge?
Overdraft fee
ATM fee
Minimum balance fee
According to the recommended spending plan pie chart, what percentage should be saved?
10%
What is "cynophopia"?
Fear of Dogs