Vocab1
deficit
When you spend more than your income.
helps people work out a plan for getting out of debt
credit counselor
Who regulates credit laws?
The Federal Trade Commission (FTC)
Example of long term goal
getting a college education, buying a car, or starting a business
Pose
you pretend to be someone else.
Surplus
Money management is only necessary for governments
False
What is the difference between gross pay and net pay?
Gross pay: total amount earned.
Net pay: gross pay minus deductions
gross pay
The amount of money you make before all deductions.
combines a consumer’s debts into one loan with lower payments
Consolidation
When will you stop Budgeting?
Never lol
Corporations never put their financial situation on their Web site because they do not want their competitors or rivals to see it.
False
usury law
prohibit lenders from charging borrowers excessively high rates of interest on loans.
when someone steals another person’s financial information
Identity Theft
How often should you ask for your credit report to check for mistakes?
Once a year
What kind of the risks should you take when financial planning?
risks you can afford to take
Opportunity Cost
what you give up when you make one choice instead of another
The difference between the budgeted amount and the actual amount you spend
Budget Variance
How are fixed expenses and variable expenses different?
Fixed expenses occur regularly.
Variable expenses change and can be controlled more easily.
What are the 3 of the seven steps to preparing a budget?
A.set goals
B.estimate income
C.budget for unexpected expenses and savings
D.budget for fixed expenses
E.budget for variable expenses,
F.record what you spend
G.review spending and saving patterns