I Know These Words
Budgeting Basics
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That's Gonna Cost Yah
This and That
100
___________ expenses are those which do not vary from month to month
Fixed
100
Describe what an interest rate is (in simple terms)
Interest is the cost of borrowing money. Typically expressed as a percentage, it amounts to a fee or extra charge the borrower pays the lender for the financed sum
100
What type of cognitive bias is this an example of?
FOMO
100
What are the three factors that influence buying behaviors... or any behavior?
Social, Economic, Personal
100
How does a retailer use MSRP prices to help trick people into buying their product?
MSRP prices are displayed and are well above the price asked in the store.
i.e: MSRP is $99 when the 'sale price' is $24.99
200
A term to describe the debts that you owe
Liabilities
200
Calculate the average monthly salary for Kyle if his weekly paycheck is always $250
$1,075-$1,082.50
$250 x 4.3 or 4.33 (# of weeks in a month on average)
200
What cognitive bias does this image represent?
Herd Mentality
200
Give an example of an opportunity cost by saving $50 from your next paycheck.
You do not get to use that $ to spend on something you want (what you give up)
200
Name 2 Consumer Protection Agencies we covered in our notes and the HW due today.
•Federal Trade Commission
•Consumer Product Safety Commission
•Environmental Protection Agency
300
Provide the time-frame for Short term, Intermediate, and Long terms goals.
Short-term: usually 1 year or less
Intermediate: 1-5 years
Long-term: More than 5 years
300
What should you do if you consistently have a budget surplus every month?
Adjust (increase) the amount you're saving
300
The fact that you recognized this company name/logo based on a small piece is an example of what type of ADVERTISING
Brand or Brand recognition
300
Provide an example of a variable expense and a fixed expense
Variable: Changes week to week (electric, gas, water, medical expenses, food)
Fixed: Does not change (Phone, Car payment, insurance, mortgage)
300
How does one calculate their net worth?
Assets - liabilities
400
The use of a standard unit of measurement to compare the prices of packages that are different sizes
Unit Pricing
400
Briefly identify the five guidelines for setting any goal
(S)pecific
(M)easurable
(A)ttainable
(R)ealistic
(T)ime-bound
400
https://www.youtube.com/watch?v=yEBCV0ic6Tc
Watch this video and identify the type of ADVERTISING
Informative
It could be Brand, but the jingle is directly related to a specific product, not McDonalds as a whole.
400
Regarding personal finance, what is the difference between a want and a need and give an example of each.
Want- something that you do not require to survive or complete daily tasks
Need- Something you require to survive or complete the basic tasks required by your family, job, etc.
400
This type of buying is done based off of emotions and often throws off your budgeting plan....if you have one.
impulse buying
500
1.) ___________ is innocent exaggeration of the truth; it could be one person’s opinion but does not represent everybody.
2.) __________ is a dishonest business practices that are meant to deceive, trick, or gain an unfair advantage for financial gain.
(Must get both)
1.) Puffery
2) Fraud
500
Place the items listed below in the correct categories: Variable expenses , Fixed expenses, Unexpected Expenses/Savings, and Income
Car Payment & Car insurance, Fuel
Entertainment, Clothes, Getting a gift (cash)
Emergency Fund Contribution, Cell Phone,
Speeding Ticket
Variable- Fuel, Entertainment, Clothes
Fixed- Car payment/insurance
Savings/Unexpected- College/Emergency, ticket
Income- Cash
500
What does the Federal Trade Commission (FTC) do?
The FTC enforces federal consumer protection laws that prevent fraud, deception and unfair business practices. The Commission also enforces federal antitrust laws that prohibit anticompetitive mergers and other business practices that could lead to higher prices, fewer choices, or less innovation
500
What is the price range for small claims court cases?
$500-$10,000
NYS raised the limit to $10,000 in January
(I said 3,000 in our notes)
500
Which of the Consumer Protection Agencies is responsible for the recalling of items for safety violations
CSPC Consumer Product Safety Commission