FL Unit 1: Financial Planning & Goal Setting
This type of goal is specific, measurable, and has a deadline.
SMART goal
The amount you earn after taxes and deductions.
Net Pay
Name the vocab word: Money set aside in a bank account for future use.
Saving
A form of protection against financial loss.
Insurance
A tool used to compare the pros and cons of a decision.
Decision Making Grid
The form used to determine how much tax is taken out of your paycheck.
W-4 Form
Name the vocab word: Spreading money across different investments to reduce risk.
Diversification
What should a consumer do FIRST if they receive a faulty product?
A. Immediately sue the company
B. Contact the company to try to resolve the issue
C. Ignore it
D. Post only on social media
B. Contact the company to try to resolve the issue
Application used to determine eligibility for federal student aid.
FAFSA
What impacts your credit score the MOST?
Payment History
Part ownership in a company, offering higher risks and potentially higher returns than some other investments
Stocks
This type of insurance covers damage you cause to other people.
Liability insurance
Which scenario best describes a private student loan?
A. A loan issued by the federal government based on FAFSA
B. A loan offered by a bank that may require a credit check
C. A grant that does not need to be repaid
D. A scholarship based on academic performance
B. A loan offered by a bank that may require a credit check
List 3 Mandatory Deductions
Federal Income Tax, State Income Tax, Local Income Tax, Social Security Tax, Medicare Tax
Which person is investing rather than saving?
A. Jordan puts money into a savings account earning 1% interest
B. Mia keeps cash in a piggy bank
C. Carlos buys shares of an S&P 500 index fund
D. Ava deposits money into checking for bills
C. Carlos buys shares of an S&P 500 index fund
What is the difference between a premium and a deductible?
A premium is the amount you pay regularly (monthly or yearly) to keep your insurance policy active, whether you use it or not.
A deductible is the amount you must pay out of pocket when you file a claim before your insurance company starts paying.
What is the difference between short-term and long-term financial goals?
Short-term goals are reached quickly (under 1 year), long-term goals take several years.
What type of loan is this? A fixed-payment loan is when a borrower knows exactly how much they will pay over time and how many payments are required to fully repay the debt, as seen in mortgages, auto loans, student loans, and personal loans.
Installment Loan
Name the investment risk: Investment price risk is the chance that an asset’s value will decrease due to supply and demand changes, where prices rise when demand is high or supply is low and fall when investors sell or fear a downturn.
Market Risk
What is phishing?
A scam where someone tries to steal personal information online.