Spending Plans
Helping track income and expenses, leading to long-term financial security and wealth is called a
Spending Plan
How do users of a credit union differ from users of a commercial bank?
they have a common bond / membership requirements
On interest earning accounts, should you look for high or low interest rates?
high
A statement of financial position looks at what two categories?
Assets and Liabilities
Rent is what type of expense? (Fixed /contractual OR variable /flexible)
Fixed/contractual
What is the first step that should be completed when creating a spending plan?
Track current income & expenses
Certificate of Deposits (CD'S) are not very ___ and provide a higher ___
Liquid and Interest Rate
Which type of account provides quick access to funds for transactions through writing checks, using a debit card, or withdrawing cash
Checking account
What equation calculates net worth
Assets-Liabilities
What two blockbuster movies are coming out on the same day in December?
Dune Part 3 & Avengers Doomsday
Name the Four Members of the Beatles
Paul, John, George, and Ringo
Funds deposited in a federally insured account (FDIC) are protected against loss for up to:
$250,000
List the four savings tools we talked about in class in order from most liquid to least liquid.
Checking, Savings, Money Market, and CD
Who is the actor that plays Michael Scott in The Office?
Steve Carrell
What does it mean to “pay yourself first?”
put aside pre-set amount of money to savings
What should you do if expenses exceed income on a spending plan?
Decrease expenses or increase income
What is the KEY difference between commercial banks and credit unions relating to PROFITS
Banks are for profit, Credit Unions are non-profits
The FDIC and NCUA both provide insurance of deposits up to a certain amount. Which one provides insurance for Banks and which one provides insurance for Credit Unions?
FDIC- Banks
NCUA - Credit Unions
Indicates the monetary value of all possessions that a person or household owns, minus the total amounts owed to others
Net worth OR wealth
On the income and expense statement, what do you do to the income amount to arrive at net income?
Subtract expenses
What type of control system would be best for someone who prefers using and carrying cash with them?
Envelope System
Define liquidity...
How easy it is to access and use funds to buy items.
Which type of banking includes apps that allow online banking access from devices such as smartphones
Mobile Banking
The 3 types of assets on a statement of financial position include ..
Monetary, Tangible, and Investment
Is your Gross Income or Net Income recorded on the income section of this statement? Explain.
Gross Income because the taxes will be taken out in the expense section