Strand 1 Sources of Income
Name examples of income
wages, commission, investment income, inheritance, and gifts.
How does cultural, social, and emotional influences affect financial decisions?
your attitude and behavior, it can influence how we otherwise wouldn't spend if it were just up to us.
Hiding finances or purchases from partner
What are fixed expenses?
recurring payments each month, example mortage, cell phone,
What are some important financial topics to discuss in a relationship to determine financial compatibility?
savings, children, living situation, vacations, aptitude about credit, spending, savings, etc.
What are the risks of entrepreneurship/self-employment?
Higher taxes, no benefits, no holiday/sick pay, inconsistent income, potential faliure, less security.
What is scarrcity?
The demand for a good or service
What are money scripts?
Unconscious beliefs about money. They are rooted in our childhood and shapte our financial health.
What are variable/flex expenses in a budget?
Monthly expense that can vary month to month. Example food, travel, gas, etc.
What are some ways couples blend finances?
prenuptial agreement, postnuptial agreement, joint funds.
What are the rewards for entrepreneurship/self-employment?
Earning potential, choose who you work with, decide your own hours, be your own boss, more control of your income.
Define Instant satisfaction in purchasing
Impulse buying
What are money/financial biases?
when people make financial choices based off of learned approaches
What things can you do to save money?
comparison shopping, delayed gratification, self regulation.
How does divorce affect one's finances?
They have less income and have to decrease thier standard of living. They now have to split assests and debts between the spouses.
What type of skills are needed in the finance industry within SAVINGS?
Hard Skills: Risk management, analytical skills,
Soft Skills: problem solving, personal management, interpersonal skills,
Define Delayed gratification in spending
Planned expenditure
When you get more serious and start paying for things together. Earlier than later, NOT on the first date.
What is the main difference between name brand and store brand items?
Name brand is heavily marketed and sold all around the world. Store brand is manufactured and sold directly to the store, less advertising.
What is custody?
The guardianship of someone or something.
What type of workplace skills are needed for someone working in the INVESTING financial industry?
Math skills, industry experience, awareness of global current events, communication skills.
How does scarcity of financial resources effect our wants and needs?
The less money we have, we are forced to just buy what we need.
Financial Infidelity, debt, attitude toward money, financial priorities.
What steps do you take to purchase a large ticket item?
Find compareable items, look at prices, features, quality, ratings, warranties.
What is child support?
Court ordered payments that the noncustodial parent must pay the to the custodian. Helps pay for childs basic needs.