Finances (FINANCIAL INSTITUTIONS), PF- 3 Overview of a Budget, Spending, & Money Management Tools- 10/10/17(Tue.)- Q #1- Budget, financial risks
PF- 3 Q 1: Ashley went to the mall and bought a new pair of jeans that caught her eye. This caused her to go over her credit card limit and now she owes a fee. What tip could have helped Ashley?
- Avoid impulse purchases. - Buy quality products. - Claim exemptions on your tax forms. - Look for bargains. answer: - Buy quality products.
PF- 3 Q 1: Who did not spend wisely?
- Erika looks for bargains online before she goes shopping. - Mia makes a list before she heads to the grocery store. - Erin makes a purchase online using a credit card. She knows that she can pay the entire bill when it arrives. - Lauren buys a cheap pair of headphones. They break, and she needs to buy a new pair. answer: - Lauren buys a cheap pair of headphones. They break, and she needs to buy a new pair.
PF- 3 Sec. 3: Choose all that apply. Taylor wants to create a budget to track her expenses and identify ways she can reduce spending. What tools could she use?
- Quicken - bill pay - spreadsheet - Mint - Budget Tracker answer: - Quicken - spreadsheet - Mint - Budget Tracker
PF- 3 Q 1: The purpose of a budget is to track your income and your spending.
- True - False answer: - True
PF- 3 Sec. 2: Overspending can keep you from achieving your goals.
- True - False answer: - True
PF- 3 Sec. 3: Online banking tools allow you to pay bills from your computer.
- True - False answer: - True
PF- 3 Sec. 1: A saving and investing plan is part of a good financial plan.
- True - False answer: - True - The parts of a good financial plan include a net worth statement, financial goals, a budget, a saving and investing plan, and an insurance plan.
PF- 3 Q 1: Taylor wants to generate a graph to show how she is doing at saving. What tool should she use?
- bill pay - budget software - online banking - graphic software answer: - graphic software
PF- 3 Sec. 1: A variable expense is a _____.
- cost that stays the same from month to month - cost for completing a budget - cost listed in a budget - cost that changes answer: - cost that changes
PF- 3 Q 1: A fixed expense is a _____.
- cost that stays the same from month to month - cost for completing a budget - cost listed in a budget - cost that changes answer: - cost that stays the same from month to month
PF- 3 Sec. 3: Spreadsheet software can be used to do all the following except _____.
- create a budget - calculate your net worth - open a savings account - create a graph answer: - create a graph
PF- 3 Q 1: Spreadsheet software can be used to _____.
- create a budget - send your net worth to a loan officer - apply for a car loan - create a graphic answer: - create a budget
PF- 3 Q 1: Jeff cannot find any of his receipts for entering into his budget. In addition, he cannot find any of his bank statements. Jeff should _____.
- go back to each store to collect the receipts - get organized by purchasing some file folders and filing his paperwork - spend less money so he doesn't have so many receipts - pay for everything on a credit card so he can track his spending from his credit card statement answer: - pay for everything on a credit card so he can track his spending from his credit card statement
PF- 3 Sec. 1: All the following are benefits of having a budget except _____.
- knowing how much you owe in taxes - reducing stress - being a better steward of God's resources - avoiding financial problems - making your money grow - knowing what you can afford answer: - knowing how much you owe in taxes
PF- 3 Q 1: In order to create a budget, you should _____.
- list your income and your assets and find the total - list your expenses and calculate the total - add all of your income and expenses and subtract the taxes - list and total your income, list and total your expenses, and subtract your expenses from your income answer: - list and total your income, list and total your expenses, and subtract your expenses from your income
PF- 3 Sec. 1: Choose all that apply. Select all the parts of a financial plan.
- net worth statement - savings account - financial goals - savings and investing plan - insurance plan - checkbook register - budget answer: - net worth statement - financial goals - budget - savings and investing plan - insurance plan
PF- 3 Q 1: Choose all that apply. Online banking tools allow you to _____.
- pay bills from your computer - transfer money from one account to another - view checking account transactions - look for bargains answer: - pay bills from your computer - transfer money from one account to another - view checking account transactions
PF- 3 Sec. 3: Randy has a hard time remembering to pay his bills on time. Which feature would you recommend for Randy?
- printable graphs - calendar - automatic notices when your checking account is - getting low - ability to calculate totals answer: - calendar
PF- 3 Q 1: Randy would like to set up a budget for a vacation he is taking next year. Which money management tool should Randy use?
- printable graphs - spreadsheet - online banking - Expensure answer: - spreadsheet
PF- 3 Q 1: A net worth statement, financial goals, and a budget are all part of a _____.
- saving and investing plan - savings account - long-term financial goal - financial plan answer: - financial plan
PF- 3 Q 1: Tips for spending wisely include the following except for _____.
- using credit cards infrequently - tracking your spending - borrowing money from reliable friends - avoiding impulse purchases answer: - borrowing money from reliable friends
List five risks that were discussed in this lesson.
1 scams 2 identity theft 3 job loss 4 product failure 5 investment loss
Choose all that apply. Select all the strategies you can use to manage risks. buy health insurance provide your personal information to others have an emergency fund have a warranty become informed carry lots of cash
Choose all that apply. Select all the strategies you can use to manage risks. buy health insurance have an emergency fund have a warranty become informed
Name four reasons for keeping your money in a financial institution.
Safety - To keep your money safe from burglars. Convenience - Its easy to get your money out of the ATM when you need it. Growth - If you put your money in a savings account you can collect interest. Security - Leaving your money in the bank will make sure that even if your money is stolen you can get it back.
Review
There are benefits to keeping your money in a financial institution. These benefits include safety, growth, convenience, security, financial future, and cost. There are three main types of financial institutions: banks, credit unions, and savings and loans. In this lesson, you looked at the differences between these organizations, as well as at factors that should affect which financial institution you select. These factors are: fees, locations, services, interest, hours, and minimum account balance.
PF- 3 Q 1: In one or two sentences, describe why it's important to spend wisely.
Writer: It's important to spend wisely because you have to be careful on how much you spend from your receipt. If you wanted to give something back from a store; you have to hold on to your receipt in order to get your money back - otherwise, you wouldn't be able to prove that you paid it before you hand back the item. Therefore, you should spend less time of money and should spend it on things that are more important.
PF- 3 Sec. 2: Describe how you can spend wisely or improve your spending habits.
Writer: Some ways to spend money wisely are avoiding impulse purchases, think about what's most important, track your spending, and be content with what you have.
PF- 3 Q 1: In one or two sentences, describe the benefits of having a budget.
Writer: Spreadsheet can create budget. Some of the things that you can track your expenses and identitify ways to reduce spending are Quicken, Mint, and Budget Tracker.
PF- 3 Sec. 1: In two to three sentences, describe how you would organize your financial information.
Writer: There are five parts to a organize your financial information. They are: net worth statement, financial goals, budget, saving and investing plan, and insurance plan. Another way to organize your financial information are bills, receipts, and account statements.
credit union
a nonprofit financial institution formed by a large corporation or organization for their employees and members
beneficiary
a person who receives the payment from a life insurance policy
budget
a plan for how you will spend and save your money
financial institution
a public or private organization that collects and invests money and offers financial services
co-payment
an amount the insured person pays to cover a portion of a doctor bill or cost for prescription
PF- 3 Sec. 2: Who is not spending wisely? - Erika goes shopping and saves her receipts. She totals how much she spent and writes it down. - Mia needs to buy a new pair of shoes because she joined the soccer team. She looks at newspaper ads to find the best price. - Lauren has been thinking about getting a puppy for a long time. She walks by the pet store at the mall and decides to get a puppy. - Erin makes a purchase online using a credit card. She knows that she can pay the entire bill when it arrives.
answer: - Lauren has been thinking about getting a puppy for a long time. She walks by the pet store at the mall and decides to get a puppy.
PF- 3 Sec. 2: Choose all that apply. Tips for spending wisely include _____. - tracking your spending - avoiding impulse purchases - using credit cards infrequently - borrowing money from your friends - looking for bargains - avoiding buying gifts
answer: - avoid impulse purchases - looking for bargains - using credit cards infrequently - tracking your spending
PF- 3 Sec. 2: Spending wisely _____. - takes a lot of time - makes you a better steward of God's resources - increases stress - means using a credit card for most of your purchases
answer: - makes you a better steward of God's resources
PF- 3 Sec. 3: A _____________ is software that contains rows and columns used to make calculations, organize information, and make comparisons.
answer: spreadsheet
variable expenses
costs that change in amount
fixed expenses
costs that remain the same amount
A financial institution formed by a large corporation for their employees is a _____.
credit union
covetousness
desire for the wealth or possessions of others
A financial institution always keeps all of your money in the vault.
false
Phishing is looking for and reporting online scams. True False
false
Life insurance _____. covers hospital bills pays for repairs on cars pays a certain sum of money to a beneficiary in case of death covers the costs associated with life
pays a certain sum of money to a beneficiary in case of death
phishing
requesting confidential information over the internet under false pretenses to fraudulently obtain credit card numbers, passwords, or other personal data
Choose all that apply. The main types of financial institutions are _____.
savings and loans banks credit unions
Choose all that apply. When selecting a financial institution that is the best for you, you should consider _____.
services offered locations of banks and ATMs fees
spreadsheet
software that contains rows and columns used to make calculations, organize information, and make comparisons
deductible
the amount a person has to pay when making an insurance claim, with the remaining cost covered by the insurance company
bodily injury limit
the most the insurance company will pay
Jen heard that the bank where she kept her money was going to close for good. Jen said she wasn't worried. Select the most likely reason that Jen wasn't worried.
She knew that her money was insured by the FDIC.
savings and loan
a financial institution that specializes in home loans
claim
a request for payment from an insurance company
insurance policy
an agreement to cover or reimburse an individual for a loss that occurs
premium
the amount paid by the policyholder for insurance
identity theft
the crime of stealing an individual's personal information in order to gain from that person's finances
PF- 3 Sec. 1: A budget is a _____.
- net worth statement - plan for saving and spending your money - table that lists your goals for saving and investing - list of what you spent last month answer: - plan for saving and spending your money
PF- 3 Q 1: A good financial plan does not really need to include an insurance plan.
- True - False answer: - False
PF- 3 Sec. 1: Net worth is the amount you have, plus the amount you owe.
- True - False answer: - False - ...'minus' the amount you owe.
PF- 3 Sec. 3: In two or three sentences, describe how you would use some of these tools to help manage your money.
Writer: I would organize data you need in order to prepare taxes. Calculate the amount of your mortgage payments or car payments.
bank
a business and financial institution; a safe place to keep your money
scam
a fraudulent scheme used to make money
The purpose of insurance is to _____. pay for repairs when you can't pay for them help protect you from financial loss protect you from getting sick and needing a doctor pay for insurance premiums
help protect you from financial loss
liability coverage
insurance that covers injury or loss to other people, for which injury or loss you are responsible
property coverage
insurance that covers the contents of your home, such as furniture, television, bikes, appliances, and clothing
consumer rights
laws that protect people who make purchases
Jim purchases land hoping that the value of the land will increase over the next five years. What risk does Jim face? scam theft losing money in an investment paying for expensive repairs
losing money in an investment
impulse purchases
purchases that are not planned
PF- 3 Sec. 2: Ashley bought an expensive pair of jeans. Her friend got the same pair of jeans for almost $20 less. What tip could have helped Ashley?
- Use credit cards infrequently. - Buy quality products. - Think about what is most important. - Look for bargains. answer: - Think about what is most important.