Personal Finance Exam

Mrs. Buckinghams1st semester exam 2011
STUDY
PLAY
needs
food, water, and shelter
value
a fundamental belief or paroctice aobut what is desirable, worthwhile, and important to an individual
major decisiion
choices that have long-term effects on a person's life
decision making process
1) identify the problem 2) list alternatives 3) decide 4) evaluate the results
SMART goal
specific, measurable, attainable, realistic, time bound
standard of living
minimum necessities, comforts, or luxeries thought to be essentioal
occupation
a wide category of jobs with similar characteristics
human capital
skills acquired through self-investment
transferable skill
aquired through various jovs, volunteering, hobbies, school sports, or other life experiences; can be ussed in an individuals jobs or career; enhance an individual's human capital
form I-9
an employment form used to avoid hiring undocumented workers or others who are not eligible to work in the U.S
gross pay is the total amount of money earned before payroll deductions and net pay is the take home pay after payroll deductions
what is the difference between gross pay and net pay?
medicare and social security
FICA is a tax taht includes two separate taxes. What are they?
income
money earned
track income and expens, helps individuals meet financial goals, and helps individuals live within their income
List benefits to creating a spending plan
major expenditure catergories
houseing, food, transportation, insurance, savings, and other
license and registration, insurance, and fuel
When determining total transportation cost, what should be considered?
comparison shopping characteristics
includes careful consideration, evaluates products features and quality, and long-term satisfaction in quality of product
opportunity cost
something an individual gives up to recieve another
savings
a portion of income that is not spent to purchase necessary or wanted items
money market account characteristics
pays a higher interest rate than a savings account, allows a limited number of transactions a month, and withdrawls can be completed with a debit card or by writing a check
certificate of deposit (CD)
Which savings tool has the potentioal to earn the most interest
credit
money lent to an individual trusting it will by paid back
advantages to using a credit card
convernient, eliminates the need of carrying around large amonts of cash, and is useful for emergencies
tear up any credit card offers received in the mail
ways to protect an inividual's identity
tips to using an ATM and debit card safely
memorize the pIN and keep it hidden, report lost or stolen cards immediately, and change the PIN if it is suspected someone else knows it
commercial bank
the most common type of financial institution
monthly statement
a report that lists each monetary transaction and the current account balance
information included on a signature card
indibidual's printed and signed name, address, and social security number
balance their checkbook register to the balance shown on their statement
when a monthly statement is received, what does an individual do to reconcile their account
savings tools
savings account, money market account, and certificate of deposit