Income and career dynamics
What is the difference between wages and dividends?
Wages are earned income from hourly labor; dividends are unearned income paid to shareholders from company profits.
Name one key advantage and one key disadvantage of using a credit card compared to a debit card.
Advantage: Builds credit history / offers fraud protection. Disadvantage: Risk of overspending and accruing high-interest debt.
What is a major non-financial benefit of renting a home instead of owning one?
what is the fundamental difference between revolving credit and installment credit?
Revolving credit allows you to borrow repeatedly up to a limit and pay varying amounts (e.g., credit cards). Installment credit is a fixed loan amount paid back in equal monthly portions over a set timeframe (e.g., a car loan).
If market demand for Cybersecurity Analysts spikes but the supply of graduates is low, what will happen to salaries in that field?
Salaries will increase due to high demand and low supply in the labor market.
Why is "reconciling financial records" by tracking income and expenses critical for a household budget?
It ensures your records match bank statements, prevents overdraft fees, catches fraudulent charges, and keeps you aligned with SMART financial goals
Standard length for a car loan term is in this range of years
5-7 years
Define the "3 Cs of Credit" (Character, Capacity, Collateral) and explain how a lack of Collateral affects a borrower.
Character (credit history), Capacity (ability to repay/income), Collateral (assets backing the loan). A lack of collateral forces a borrower to get unsecured credit, which usually carries much higher interest rates.
define opportunity cost using a personal finance example involving spending vs. saving.
Opportunity cost is the next best alternative given up when making a financial choice. Example: Choosing to spend $1,000 on a vacation means giving up the compounding interest that money would have earned in a long-term retirement fund.
Explain how unplanned spending impacts a person's progress toward a medium-term financial goal (e.g., buying a car in 3 years).
List three distinct factors an individual must evaluate when deciding whether to buy a home or rent.
00Name two predatory lending practices common with payday or title loans, and identify the law that forces lenders to clearly disclose their true interest rates.
: Predatory practices include triple-digit APRs, hidden rollover fees, and aggressive asset seizure. The Truth in Lending Act (TILA) requires these disclosures.