Family Life Cycle
What framework examines important issues for various family units?
A. Indoctrination
B.Personalization
C.Individualization
D.Categorization
What is Categorization?
What does budgeting require you to calculate?
Income & expenses
What is the first step to opening a bank account?
Choose a financial institution
True or False: Anyone can open a 401K
False
"Investments that provide ownership of public companies" This phase is best described as...
Stocks
What explains how a person changes financial position, earnings, consumption, and savings?
What is "Family Life Cycle"
What tool can help reorganize finances to reduce debt or increase savings?
Budgets
What type of account allows you to withdraw and deposit money for daily expenses?
Checking accounts
What type of account allows someone to save for retirement with tax benefits?
Individual Retirement Accounts (IRA)
What is one major difference between common stock and preferred stock
A. Voting rights
B. Exchange rates
C. Callable features
D.Liquidity
A. Voting rights
If expenses exceed income, what should you do to cut spending?
A.Not eat out as much
B.Obtain another job
C. Receive a consumer loan
D. Invest in stacked certificates of deposit
A. Not eat out as much
True or False: Checking accounts allow withdrawals and deposits through checks, ATMs, and electronic debits.
True
What employer-sponsored retirement plan allows employees to put part of their earnings into a financial portfolio?
401K plans
Which provides ownership in a public company: a savings account, stock, 401k, or tax payment?
Stocks
What are some categories of the family life cycle?
Examples:
Couple, retired
Older, single
Single, with children
Single, retired
Budgets can help reduce _______ while increasing _______.
A Problems; Happiness
B. Funds; expenses
C. Debt; savings
D. Consistency; originally
C. Debt; savings
Which could be a disadvantage of having a checking account: no monthly fees, withdraw limits, free bill pay, or free direct deposit?
Withdraw limits
What type of account has a fixed term, fixed interest rate, and generally higher interest than a savings account?
Certificate of Deposits
True or False: Common stockholders generally have voting rights
Common Stock
What is the focal point of developing a personal financial plan and requires a target date for achievement?
What are Goals?
If income exceeds expenses, what should you consider doing with the extra money?
A. Increase income sources
B. Go on Vacation
C. Decrease income sources
D. Research investment and savings options
D. Research Investment and savings options
A money market account generally has a higher rate of return, but which type of account has a lower required minimum balance?
A savings account
What type of account earns interest over time but typically limits the number of transfers and withdrawals?
Savings Accounts
Short term goals cover a period time of...
one to two years