Chapter 3
What was the topic of Chapter 3?
Budgeting
Debt
What is the system of budgeting which uses literal or figurative "envelopes" to keep your cash in for monthly expenses?
The Envelope System
What occurs when money is withdrawn from a bank account and the available balance goes below zero?
Overdraft
Do Casinos appreciate or depreciate in value?
They Appreciate
What type of budgeting system assigns an expense to every dollar of your income, so that your total income minus your total expenses equals zero?
A Zero-Based System
What term holds this definition?
"A yearly fee that’s charged by a company for the convenience of using their goods or services"
Annual Fee
Using the Debt Snowball method, which of these loans would you pay off first?
A. $4,110 at 6.7% Interest
B. $5,250 at 2.4% Interest
C. $3,987 at 5.2% Interest
D. $4,110 at 5.3% Interest
E. $3,898 at 2.4% Interest
E. $3,898 at 2.4% Interest
Name two of the four "Financial Walls of your House"
Any Two:
Rent/Mortgage, Utilities, Food, Transportation
Currently, what is the color of the leaves on my Lego Bonsai tree on my desk in the band room?
Green
What term holds this definition?
"Act of matching your bank statement with your checkbook"
Reconcile
Define "Depreciation"
A decrease or loss in value
Using the Debt Avalanche method, which of these loans would you pay off first?
A. $4,110 at 5.7% Interest
B. $5,250 at 2.4% Interest
C. $3,987 at 5.2% Interest
D. $4,110 at 5.9% Interest
E. $3,898 at 3.4% Interest
D. $4,110 at 5.9% Interest
What term holds this definition?
"A three-digit number that summarizes a person's credit risk and is used by lenders to determine whether to extend credit."
A FICO Score
In today's video with Dave Ramsey, what animal did the prop look like that was on stage with him?
A shark
Which term holds this definition?
"A copy of each check you write"
Carbon Check
Which method of debt repayment is organized by paying off the loans with the smallest balances first, then paying off the bigger balances?
Debt Snowball
True or False:
In using the Envelope System, you can't implement a Zero-Based System with it because the two systems don't work together.
False
What term holds this definition?
"A summary that shows total income and spending for a given period of time"
Cash Flow Statement
In our slides yesterday, why was the DeLorean from Back to the Future picked as a depreciating asset?
It gets wrecked in the last movie
What is the definition of a Budget?
A plan for your money
Define the Debt Avalanche Method as well as one reason why it might be better than other methods.
Something akin to... "A method of debt repayment; organized from largest to smallest interest rates; minimum payments are made to all debts except for the one with the largest interest rate, which is attacked with the largest possible payments."
This method typically is able to pay off your loans faster.
SURPRISE COMPOUND INTEREST!!
If you put $100 into a savings account at 10% yearly Compound Interest, how much would you have in that account in 2 years?
$121
What do Credit Bureaus do?
They research & collect individual information & sell it to creditors (banks, mortgage lenders, credit card companies, etc.) so they can make a decision on granting loans.
What is the monthly cost of a multiplayer "Realms Plus" server for the Bedrock edition of Minecraft, where you can play with up to 10 other players at a time?
$7.99 USD a Month