Financial Literacy Test

List the 5 steps in the Decision Making Process Identity the problem Gather information and list possible alternatives Consider consequences of each alternative Select the best course of action Evaluate the results

Financial planning is a ___thinking process____________ ______________________ that helps achieve goals

List the five steps in creating a Financial Plan? Determine your current financial situation Develop your financial goals Identify your options Evaluate your alternatives Create and use your financial plan of action

What does a SMART goal stand for? Specific Measurable Attainable Realistic Time-Limited

What is Gross Income? Hours times rate of pay

What is Net Income? Gross income minus tax deduction

What are the four taxes employers must deduct from your paycheck? Federal Withholding FICA Medicare Utah State Withholding

What does FICA stand for? Federal Insurance Contribution Act

What is a W-4 used for? Used to tell employer payroll department the amount of allowances for employee.

What is an I-9 used for? Evidence of illegible work status

What does a W-2 show? Reports taxable income and taxes withheld

How is a 1040 EZ different from a 1040? Shorter version of 1040

What is an Entrepreneur? Self-employed person

What is a spending plan? A tool used to record and track projected and actual income and expenses over a period of time. Also called a budget.

What is a check? Access to funds in checking account

What does it mean when you bounce a check? Insufficient funds

What is a checking account register? Tracks checking account transactions

What does ATM stand for? Automated Transaction Machine

What is a Debit Card? Checking account access using card

What is a PIN? Personal Information Number

What is Direct Deposit? Paycheck deposit directly from employer to employee checking account

What is Bankruptcy? All debt removed

What is Debt? Amount owed to company

What is the Time Value of Money mean? Money value in the future

What is insurance? Damage coverage

What is compound interest? Interest amount growing over period of time

What is an insurance premium? Amount paid for insurance coverage

Banks and Credit Unions are FOR PROFIT True False

Define the word Usury. The illegal action or practice of lending money at unreasonably high rates of interest.

Damon Williams loved to buy New Balance basketball shoes. True False https://www.youtube.com/watch?v=gCTEPzSjvVw