Budgeting
What is a budget?
A budget is a financial plan for a defined period of time (monthly usually)
How do you calculate an emergency savings fund?
Multiply your monthly income by the number of months you want to save for.
What is the written contract created by two people before they are married?
Prenuptial Agreement or Prenup for short
Should you try to understand your partner’s debt before or after marriage?
Before marriage
What is the difference between a budget and a personal balance sheet?
PBS calculates assets-liabilities to give a snapshot of your wealth at the moment while a budget tracks financial planning for a set period of time
What is the rule of 72?
It estimates the amount of times for funds to double with compound interest (72/interest rate).
What are the first three steps in the job seeking process?
Research, Apply, then Job Interview
When do you qualify for social security?
After working for a minimum of 10 years
Explain the Zero Balance (traditional budget)
List expense categories alongside a target amount you would like to spend on those categories in that defined time period
Is a mid-cap equity fund or small-cap equity fund considered more risky when investing?
Small-cap equity funds.
When getting your recommendation letters, you should select from a very ____ group.
Diverse
How does a traditional 401k work?
The funds are taken before taxes and are taxed at distribution
What are the two types of expenses and explain the difference.
Variable and Fixed. Variable expenses can change from month to month (eating out, shopping, gas, etc) while fixed expenses do not change month to month (car payment, phone bill, rent, etc)
Would it be more beneficial to invest $100 monthly for 50 years or $167 monthly for 30 years?
$100 monthly for 50 years.
When preparing for a job interview, how do you choose what level of attire you should wear?
One level above the job you want
Roth IRA contributions are/are not tax-deductible?
Not tax-deductible
What is a SMART goal and when does it play a role in your budget?
Specific, measurable, attainable, relevant, time-based. It is the first step of making your budget
Name the three types of asset classes.
Stocks, bonds, and cash equivalents.
During job negotiations, out of salary, vacation days, and life insurance, which one of these three is non-negotiable?
Life Insurance
What is the average cost of a baby’s first year of their life?
$12,500