Budgeting
Credit
Saving
Building Income
Finance
100
True or False: When budgeting, you want to spend more money than you make? (Expenses > Income)
False!
100
What is a credit score?
A score assigned to a person to indicate his/her ability to repay a loan
100
What is the best way to begin saving?
Save a fixed percentage of your monthly income/allowance
100
Name two ways you could earn money this summer
Car Wash, Lemonade Stand, Chores (Parents Must Agree), Garage Sale, etc
100
Which school subject is most related to the field of finance?
Math
200
Name one reason it is important to have a budget
Budgets allow you to plan/save for long term goals. *Various Answers Possible*
200
True or False: Credit scores reset each year
False - your credit score is built over your entire life
200
What are some reasons a high schooler may be saving money?
Car Purchase, Monthly Car Payment, College Expenses, Gas, New Video Game, Dating
200
How much are you likely to spend each year in retirement?
$50,000 - varies by state
200
What is the primary responsibility of a debt collector?
Collecting past-due, owed funds from customers
300
Name two components of a budget
Income, Expenses
300
Why is your credit score important?
Lenders look at this score to decide whether to lend to you (home loan, car loan, etc)
300
What is time value of money?
Person 1: saved $6,000/year at age 25 until retirement ($240,000 total); has $1,809,000
Person 2: saved $8,000/year at age 35 until retirement ($240,000 total); has $1,059,000
Person 3: saved $12,000/year at age 45 until retirement ($240,000 total); has $649,000
300
True or False: College graduates earn the same amount of money as high school graduates
False!
High School Grad: $38,792 median salary
College Grad: $64,896 median salary
300
What does a bank teller do?
Bank tellers help people complete transactions such as deposits, withdrawals, and money transfers.
400
Name two examples of an expense that is billed every month for the same amount (fixed expenses)
Rent, Mortgage, Car Payments, Wifi Payments *Various Answers Possible*
400
What is the difference between a credit card and a debit card?
A debit card pulls funds from your checking account. A credit card uses "borrowed" funds that you must pay back.
400
What is the difference between a want and a need?
A need is a necessary expense (food, shelter, clothing). A want is "nice to have" but not a necessary expense (new video game, new mascara)
400
Name a method of investment
401k, Real Estate, Stock Market, IRA, 529s, etc
400
What does a Personal Financial Advisor do?
Personal financial advisors take your financial information and offer advice on money steps you might want to take.
Ex: Recommending different investment opportunities
500
Why is it important to have an emergency fund?
Allows you to be financially prepared for unexpected expenses (car repairs, house repairs, doctors visits, etc)
500
Name one component of a credit score?
Payment History, Credit Utilization, Length of Credit History, Credit Mix, Number of Credit Inquiries
500
What does it mean to "spend within your means"?
Not spending more than you can reasonably afford.
Ex: If you make $40,000/year, you don't want to buy a $100,000 car.
500
What percentage of your income should you invest?
10%-15% of your income
500
What is a Market Research Analyst?
These financial workers look at how the market is doing in a specific area. They analyze sales, demographic and related information to get a sense of what people might buy in the future.