Vocab
The total value of money and other assets,
minus outstanding debts
wealth
Paying the minimum payment on a credit card every month will:
a) pay a large percentage of the total balance owed every month
b) make the final amount paid substantially higher than the amount initially charged to the car
c) help the cardholder create a plan for paying off a credit card in a decent amount of time
d) allow the cardholder to avoid paying any interest charges
b) make the final amount paid substantially higher than the amount initially charged to the car
What are the 3 steps in obtaining a credit card?
Determine what fits your needs complete a credit application approval or denial
Leila just graduated from college and is comparing a few different cities to move to. Which of these factors is the LEAST important thing for her to consider right now?
a) Average rent for an apartment
b) Food and grocery store options in the area
c) Employment opportunities
d) Average cost of Uber, Lyft, or taxi fare
d) Average cost of Uber, Lyft, or taxi fare
T or F
Credit card applicants will always be accepted for the card they apply for, but they may have to
pay a higher interest rate
false
Purchases a person must have to live or
succeed or bills that must be paid to remain
in good standing
needs
You earn a salary of $40,000 per year and decide to save 20% of your gross pay. You then set a goal of creating a $16,000 emergency fund. How long will it take for you to achieve your goal?
a. 6 months
b. 1 year
c. 2 years
d. 3 years
c. 2 years
List 3 responsibilities of the landlord
Making repairs in a reasonable amount of time. •Keeping premises safe and sanitary. •Entering premises only at agreed-upon time to make repairs (unless there is an emergency), or to show the apartment to potential renters if you are moving out. •Paying interest on deposit money. •Collecting rent. •Maintaining exterior grounds of building.
Which of these boxes of cereal has the lowest unit price?
a) Cereal A, which costs $3.20 for a 16 oz. box.
b) Cereal B, which costs $5.00 for a 32 oz. box.
c) Cereal C, which costs $2.50 for a 10 oz. box.
d) Cereal D, which costs $4.50 for an 8 oz box.
b) Cereal B, which costs $5.00 for a 32 oz. box.
Joanne is buying a new car for the first time and wants to make sure she does everything she can do to minimize the overall cost. Which of the following will help her the MOST?
a) Putting an extra $50 towards her down payment
b) Lowering her interest rate from 4% to 2%
c) Increasing her loan term from 60 months to 84 months
d) Getting an upgraded model of the car in the same class
b) Lowering her interest rate from 4% to 2%
Nonessential purchases a person wants to
feel happy, make life convenient, fit in with
peers, etc
wants
You are putting together your first post-graduation budget. Your take-home pay will be $2,500 per month. You estimate your monthly costs to be rent of $900, car related expenses to be $550, entertainment of $200, food expense of $250, cable bill of $75, mobile phone of $100, student loan payment of $400 and other expense of $150. How would you describe your budget after analyzing all of your income and expenses?
a) You have a surplus of $125.
b) You have a deficit of $125.
c) You have a deficit of $2,625.
d) You have a surplus of $2,500
b) You have a deficit of $125.
List 3 things to keep in mind when preparing your budget
personal and financial goals, income, lifestyle, fixed and flexible expenses, moving costs, moving in costs, cost of furnishing
Isaiah works for the summer at a technology company and has a salary for the summer of $3,000. After Federal and state taxes, Social Security, and Medicare are deducted, his take-home pay is $2,500. Which of the statements below is correct?
a) His gross pay is $2,500 and net pay is $3,000.
b) His gross and net pay are $3,000.
c) His gross and net pay are $2,500.
d) His gross pay is $3,000 and net pay is $2,500.
d) His gross pay is $3,000 and net pay is $2,500.
Explain what the 50/20/30 Rule is
50 Fixed Expenses, 20 Savings, and 30 Fun
A plan of your expected income and how you
will use it to meet your expected expenses
over a period of time
budget
Which of the following is a BAD budgeting strategy to use if you want to save money at the grocery store?
a) Prepare a grocery list before you go to the store, and avoid buying items that aren’t on the list.
b) Build a weekly meal plan around items you already own or items that are on sale that week, rather than just choosing foods you'd like to eat.
c) When comparing similar products, focus on the price only.
d) When comparing similar products, be sure to compare based on unit price.
c) When comparing similar products, focus on the price only.
What are 6 reasons to budget?
1.It Helps You Keep Your Eye on the Prize,2. It Helps Ensure You Don't Spend Money You Don't Have,3. It Helps Lead to a Happier Retirement 4. It Helps You Prepare for Emergencies 5. It Helps Shed Light on Bad Spending Habits 6. It's Better Than Counting Sheep
You're considering moving into a 3 bedroom apartment with 2 roommates, rather than living on your own post-college. Mark which of YOUR expenses would likely decrease by having roommates.
a) groceries and eating out
b) rent
c) cell phone bill
d) bedroom furniture
b) rent
T or F
An individual’s liability for unauthorized credit card charges is much higher than an individual’s
liability for unauthorized debit card purchases, regardless of when the fraud is reported
false
are expenses that change from month to
month, such as how much you spend on
utilities.
Flexible Expenses
You overhear your cousin talking about the importance of creating and sticking to a budget. Which of the following reasons he gives below is actually FALSE?
a) A budget can help you identify any bad spending habits.
b) Using a budget can allow you to work towards your financial goals.
c) Having a budget can help you create an emergency fund.
d) Using a budget can qualify you for special discounts at your favorite stores
d) Using a budget can qualify you for special discounts at your favorite stores
there were 12 Budgeting Tips in your notes. List 6 of them
1. Budget every month before the month begins. 2. Budget to zero. 3. Track every expense. 4. Review your spending habits. 5. Set a realistic budget. 6. Make adjustments 7. Create a “Miscellaneous" category. 8. Budget for annual and semi-annual expenses. 9. Save for big purchases a little at a time. 10. Budget for fun. 11. Understand the difference between needs and wants. 12. Give yourself grace.
Franny is a recent college graduate with little budgeting experience. She is trying to stick to her budget but is finding that she continues to have a deficit at the end of each month. Which of the following steps she takes could explain why this keeps happening?
a) Franny uses her net pay when budgeting her money.
b) Franny uses the 50-20-30 rule to allocate her money.
c) Franny tracks her monthly spending at the end of the month.
d) Franny has identified her needs and wants.
c) Franny tracks her monthly spending at the end of the month.
There were 14 tips on how to select a place to live. List 7 of them
. Affordability, Taxes, Employment Opp. Real Estate Value, Crime Rates, proximity to family and friends, climate, education, culture, commute, food options, city size, healthcare facilities, airport