PERSONAL FINANCE

WHAT IS A DEMAND DEPOSIT IN A BANK ON WHICH CHECKS ARE DRAWN? CHECKING ACCOUNT

WHAT IS THE INTERNAL REVENUE SERVICE CALLED IRS OR UNCLE SAM!

STAYS ON YOUR CREDIT REPORT FOR 10 YEARS A.BANKRUPTCY B.FINANCING C.SIGNIFICANT PURCHASE D.CREDIT BUREAUS

YOUR MONTHLY BUDGET SHOULD INCLUDE: A.FIXED EXPENSES B.VARIABLE EXPENSES C.MONEY TO BLOW D.ALL OF THE ABOVE

BUYING USED CARS IS A GOOD WAY TO MINIMIZE DEPRECIATION A.TRUE B.FALSE

DOES A HOUSE APPRECIATE OR DEPRECIATE?

➢ Persons claimed that reduce the amount of tax withheld from your paycheck. ● ALLOWANCES ➢ When you report to work, you will be asked to fill out a form declaring how many allowances you are going to claim. What is that form called? ● W-4

WHEN DEMAND FOR A PRODUCT INCREASES BECAUSE EVERYONE WANTS THE NEW TRENDY PHONE CASE FASTER THAN THE COMPANY CAN MAKE THE CASES, THE PRICE OF THE CASE MAY _______________ INCREASE

➢ If you do not have to have ANY federal income tax withheld from your income you are _________________. ● EXEMPT ➢ A social insurance program that covers the nation’s workforce. It provides retirement, disability and survivor benefits to those qualified. ● SOCIAL SECURITY

➢ Lists income that you received during the year and all the amounts withheld from your paycheck. Mailed to you by your employer. ● W-2 Form ➢ When do you have to have your federal income tax return filed by? ● APRIL 15th

➢ The legally established lower limit on wages that employers must pay. ● MINIMUM WAGE ➢ Number of hours in the standard work week. ● 40 HOURS ➢ Employers must pay hourly employees extra money for working more than 40 hours. That rate is: ● 1 ½ TIMES THEIR REGULAR PAY RATE

➢ The total pay before any deductions are made is known as ● GROSS PAY ➢ _________________ is defined as hours worked beyond regular hours. ● OVERTIME ➢ Amounts subtracted from your gross pay: ● DEDUCTIONS

➢ The amount left when all the deductions are subtracted from your gross pay: ● NET PAY

➢ Largest source of government revenue is: ● INCOME TAX

➢ QUESTION: A plan for spending and saving money ■ ANSWER: ■ Budget

How often should one make a written budget? Monthly

Should your budget = 0 Yes, zero based budget Give every $ a name

Your monthly budget should include? fixed expenses variable expenses money to blow NEED TO GIVE EVERY DOLLAR A NAME!

WHAT ARE THE NAMES OF THE THREE CREDIT BUREAUS? EXPERIAN TRANSUNION EQUIFAX

YOU BUY CANDY IN THE CHECKOUT LINE AT THE GROCERY STORE IS AN EXAMPLE OF: IMPULSE PURCHASE

YOUR CREDIT TRANSACTIONS STAYS ON YOUR CREDIT REPORT FOR HOW MANY YEARS? 7 BANKRUPTCY STAYS ON YOUR CREDIT REPORT FOR HOW MANY YEARS? 10

IF YOU OWE MONEY IT CAN BE DIRECTLY TAKEN FROM YOUR PAYCHECK IF AND ONLY IF IT IS ORDERED BY THE COURT. THIS IS CALLED... GARNISHMENT

PAYDAY LENDING AND CASH ADVANCE COMPANIES CHARGE MORE OR LESS INTEREST THAN A BANK MUCH MUCH MORE! DO NOT USE THESE BUSINESSES

STUDENTS FILL OUT WHAT FORM TO RECEIVE FEDERAL FINANCIAL AID FOR COLLEGE OR TECHNICAL SCHOOL? FAFSA

FAFSA STANDS FOR? FREE APPLICATION for FEDERAL STUDENT AID

STUDENTS FILL OUT WHAT FORM TO RECEIVE FEDERAL FINANCIAL AID FOR COLLEGE OR TECHNICAL SCHOOL? FAFSA

YOUR CREDIT HISTORY IS TRACKED BY THE THREE _____ CREDIT BUREAUS (EXPERIAN, TRANSUNION, AND EQUIFAX)

FICO, USES THE CREDIT BUREAUS INFORMATION TO CALCULATE YOUR…. CREDIT SCORE

ACCORDING TO FICO THE HIGHER THE SCORE (CLOSER TO 850) MEANS... LOWER THE RISK YOU ARE A LOW RISK AND MOST LIKELY PAY YOUR DEBT BACK

WHAT IS DAVE RAMSEY’S CREDIT SCORE? ZERO - BECAUSE HE IS NOT IN DEBT AND HAS NOT BORROWED MONEY SO THEY CANNOT CALCULATE A SCORE AND HE IS A MILLIONAIRE! CASH IS KING!

HOW OFTEN CAN YOU REQUEST A FREE CREDIT REPORT? YEARLY! YOU NEED TO DO THIS EVEN IF YOU DO NOT BORROW MONEY TO MAKE SURE YOUR IDENTITY HAS NOT BEEN STOLEN

FEDERAL TAXES MUST BE FILED AND SENT TO THE IRS (UNCLE SAM) BY _______________ APRIL 15

SUSAN NEEDS TO GO TO THE DOCTOR. SHE PAYS A $300 MONTHLY PREMIUM FOR HER FAMILY HEALTH INSURANCE. SHE ALSO HAS A $50 CO-PAY. HOW MUCH DOES SUSAN HAVE TO PAY THE DOCTOR ON HER VISIT? $50 SUSAN IS RESPONSIBLE FOR THE CO-PAY. THE $300 IS HER MONTHLY PREMIUM (COST) FOR HAVING INSURANCE.

A REPORT SHOWING ALL YOUR PAYMENT HISTORY IS CALLED _______________ CREDIT REPORT

YOU CAN GET WHAT TYPE OF INFORMATION REMOVED FROM YOUR CREDIT REPORT _______________ INACCURATE INFORMATION

YOU BUY CANDY IN THE CHECKOUT LINE AT THE GROCERY STORE IS AN EXAMPLE OF: IMPULSE PURCHASE

THE TRUE COST OF SOMETHING IN TERMS OF WHAT YOU GIVE UP IS CALLED OPPORTUNITY COST

➢ QUESTION: ● Amount of money earned before taxes is known as? ■ ANSWER: ■ Gross Income

➢ QUESTION: ● Amount of money earned after taxes is known as? ■ ANSWER: ■ Net Income

➢ QUESTION: ● Assuming a Gross Salary of $100,000 and a tax rate of 25%: What is your Gross Income? What is your total income tax bill? What is your Net Income? ■ ANSWER: ■ Gross Income = $100,000 ■ Income Taxes = $25,000 ■ Net Income = $75,000

➢ QUESTION: ● There are three types of expenses? What are they? ■ ANSWER: ■ Fixed, Variable and Discretionary

➢ QUESTION: ● A cost that occurs regularly and doesn’t vary in amount is known as a: ● Give two examples: ■ ANSWER: ■ Fixed Expense ■ Rent, Car Payment etc…

➢ QUESTION: ● A cost that occurs regularly but varies in amount is known as a: ● Give two examples: ■ ANSWER: ■ Variable Expense ■ Phone, Electricity, Groceries etc…

➢ QUESTION: ● A cost that is determined by personal wants and needs: ● Give two examples: ■ ANSWER: ■ Discretionary Expense ■ Vacations, Entertainment, Clothes that are not essential like a leather coat because you could choose a less expensive coat to meet the need.

➢ QUESTION: ● The value of what you had to give up to pursue another option is known as? ■ ANSWER: ■ Opportunity Cost

➢ QUESTION: ● Giving up some of one thing to have more of another is known as: ■ ANSWER: ■ A tradeoff

➢ QUESTION: ● Banking service where you deposit money into it, and can then write drafts to people or businesses to pay off money owed? ■ ANSWER: ■ A checking account

➢ QUESTION: ● There are a lot of questions you should ask before opening up a checking account? Name one? ■ ANSWER: ■ Minimum balance? ATM card? Debit Card? Direct deposit? Free Checks? Etc…

➢ QUESTION: ● A check that the bank has already processed and paid out? ■ ANSWER: ■ Cancelled check (or cleared check)

➢ QUESTION: ● When you don’t have enough money in your account to cover a check? ■ ANSWER: ■ Overdraft (or bounced check)

➢ QUESTION: ● A form that you fill out when you open your checking account. Provides the bank with a record of how you sign your name. ■ ANSWER: ■ Signature Card

NAME ADDRESS

➢ QUESTION: ● A form you fill out when you are depositing money into your checking account. ■ ANSWER: ■ Deposit Slip

➢ QUESTION: ● A personal record of all your deposits and withdrawals should be kept in your: ■ ANSWER: ■ Checkbook Register

➢ QUESTION: ● Process of comparing your bank statement to your checkbook register to insure that the numbers match. ■ ANSWER: ■ Reconciling your account (or balancing your account)

➢ QUESTION: ● What are examples of logical reasons your checkbook balance doesn’t match your bank statement balance? ■ ANSWER: ■ Outstanding checks (you wrote them but they haven’t been cashed yet) ■ Outstanding deposits (you deposited them after the bank statement was mailed) ■ ATM withdrawals or service fees that you forget to record in your checkbook register

➢ QUESTION: ● You cannot cash a check unless it has been ______________________. ■ ANSWER: ■ Endorsed

■ QUESTION: ■ What type of endorsement is this? ■ ANSWER: ■ Blank Endorsement

■ QUESTION: ■ What type of endorsement is this? ■ ANSWER: ■ Restrictive Endorsement

➢ QUESTION: ● Special ATM Card that allows you to pay for transactions right out of your checking account by simply swiping the card ■ ANSWER: ■ Debit Card

STUDY, STUDY, STUDY ➢ You should all get 100% if you study. ➢ You will not be able to use your notes during the final.