Show:
Goals and Decision Making
Savings
Budgeting
General
Some Calculations
100
What are the three types of goals?
Short term, medium term and long term goals
100
Three of the six primary rules to effectively save is: Save ______, save _______, save long-term
Save "early", save "more", save "long-term"
100
What are the two main parts in a budget?
Income and Expense
100
What do we do to a check when we write an incorrect amount?
Void it
100
Sam deposited $1350 in his bank account. After two years, his account showed a balance of $1420. How much interest did he earn?
$70
200
What are short-term goals? Give some examples
Short term goals are ones that a person wants to achieve in the near future, usually within a year. Wanting to do well in a final exam, painting one's bedroom in summer, and saving to buy a video game during Black Friday are examples of this.
200
I = PRT is the formula for calculating what?
Simple Interest
200
What are the three types of expenses?
Fixed, Variable, Discretionary
200
What is a check stub?
A part of a check that is kept for record keeping purposes. The check stub can be a carbon copy of a check that is made when the original check is written.
200
Julie deposited $400 in a bank account that paid simple interest. She got a 5% interest rate. After 200 days, she withdrew her money. How much interest did she earn?
$10.96
300
What is opportunity cost?
An opportunity cost represents the next best alternative given up when a decision is made
300
What is the type of account people use the most to pay their bills from?
Checking account
300
Paying rent for an apartment is considered what type of expense?
Fixed
300
How is gross income different than net income
For a wage earner, gross income is the amount of salary or wages paid to the individual by an employer, before any deductions are taken. For a wage earner, net income is the residual amount of earnings after all deductions have been taken from gross pay, such as payroll taxes and retirement plan contributions.
300
You put $1000 into an investment yielding 6% annual interest; you left the money in for two years. How much interest do you get at the end of those two years?
$120
400
What is cost comparison? Why should one use this strategy?
It is the process of comparing the price of different products or services that are similar in nature. It allows a person to reflect on one's decision making and make a wise decision when making a purchase.
400
One thing millionaires do with their money that helps them get more rich
Invest long-term
400
Buying a soda everyday is considered an example of _____ while buying food for the family is considered an example of ______.
Want, Need
400
Why do banks pay you interest?
Banks use the money deposited on savings accounts to lend to borrowers, who pay interest on their loans. After paying for various costs, the banks pay money on savings deposits to attract new savers and keep the ones they have
400
If you deposited $2750 at a fixed annual interest rate of 6%. In how many years will this amount double?
12 years
500
What is cost benefit analysis?
Cost–benefit analysis is a systematic approach to estimating the strengths and weaknesses of alternatives; it is used to determine options that provide the best approach to achieve benefits while preserving savings.
500
What is the formula for compound interest? Anyone remembers?
A = P(1+r/n)^nt
500
How is opportunity cost useful when creating your budget?
Opportunity Cost allows you to decide what’s important and what can be sacrificed to reach your goals.
500
What is the rule of 72?
If you divide 72 by the rate of interest, it calculates the number of years it will take to double your savings in your account.
500
Tina opened a savings account and deposited $300.00. The account earns 9% interest, compounded annually. If she wants to use the money to buy a new bicycle in 3 years, how much will she be able to spend on the bike?
$388.51