Income
What are three forms of income?
Earned, Passive, and Portfolio
What is a budget?
A budget is an estimate of income and expenses for a set period of time
What are three accounts that are used for managing your money?
Checkings account, savings account, and certificate of deposit
What is credit and what does it allow?
Credit is an agreement where a financial institution agrees to lend a borrower money. Credit allows you to purchase something right now that you're unable to pay for upfront
What is the difference between a want and a need?
Want: something you would like to have
Need: something you must have to survive
What are three examples of earned income?
Salary, Commission, and Wage
How does a budget help?
A budget helps manage money, prioritize expenses, and become prepared for regular/unexpected expenses
What is a deposit and withdrawal?
Deposit: adding money to your account
Withdrawal: taking money from your account
Who determines your credit?
Credit bureaus
What factors influence consumer purchase?
Cultural, Social, Personal, and Psychological
What is gross pay?
The total pay before deductions
How should large expenses be paid?
Large expenses should be equally divided between all paychecks
What is the require minimum deposit to open an account?
$50-$100
What is interest and interest rate?
Interest: the fee that is paid to borrow money
Interest rate: the rate lenders charge borrowers for money
Explain cultural, social, personal, and psychological factors.
Cultural: Ideals from family, friends, or environment
Social: Ideals from social origin, place of residence, work, or hobbies
Personal: Ideals from age, way of life, or personality
Psychological: Ideals from motivation, perception, or learning
What is the definition of earned, passive, and portfolio income?
Earned: any income generated by working
Passive: money earned from assets you have purchased or created
Portfolio: any income generated by selling an investment at a higher price than you paid for it
Which budget item has the largest allowance?
Housing
What are checkings, savings, and certificate of deposit accounts?
Checkings: allows easy access to your money
Savings: allows to save money and make deposits or withdrawals
Certificate of Deposit: allows to invest money with a set interest rate for a pre-set period of time
What is a loan, secured loan, and unsecured loan?
Loan: a sum of money that is borrowed
Secured Loan: a loan that is guaranteed by an asset
Unsecured Loan: a loan that is not guaranteed with an asset, relies on credit history
What are major types of deceptive advertising techniques to be aware of?
Deceptive Description, Deceptive Pricing, Deceptive Comparison
What are some factors that influence income?
Training, Work Ethic, and Education
What are the biggest factors for determining your budget?
Income and Major Expenses
What does a balance account do for you?
A balanced account avoids the risk of being overdrawn and spending more money than you have available
What is a credit card?
a card issued by a bank or business allowing you to purchase good and services on credit; and open-ended loan
Explain deceptive description, pricing, and comparison
Deceptive Description: misleading product description, claiming a product has certain features that it does not
Deceptive Pricing: using hidden fees or sub charges, the price in the end is higher than advertised
Deceptive Comparison: deceive consumers by focusing on areas in which their product exceeds their competitors'; vague and no proof