Personal Finance - Module 2 and 3

Garbage disposal

$100-$400

Hot water heater

$250-$1,500

Dishwasher

$300-$1,000

Washer or dryer

$400-$1,200

Refrigerator

$600-$3,000

Both kinds of bankruptcy may help stop procedures related to _____________________.

- foreclosures - garnishments - repossessions - utility shut-offs

What three things should you avoid doing so your credit score won't be affected?

- transferring a credit balance from one credit card to another -closing credit accounts -not using credit cards

When you have a credit card, it comes with certain stated policies and privileges. Select all that pertain to being a credit card customer:

-APR interest rates tend to be between 8-24% -Most cards have a grace period of 25-30 days where no interest is charged on purchases. -There is a minimum payment due based on your account balance and percentages. -Some credit cards come with rewards points or cash-back programs. -Annual fees are assessed yearly by some credit card companies, especially for premier accounts. -Late fees can/will be assessed if your payment is past due.

Choose all procedures and steps related to buying an automobile.

-Choose a vehicle that best suits your needs and budget. -Research options for financing and don't always depend on the dealer for the best offer. -Take a test drive. -Choose insurance coverage that is correct for your car. -Check out the reputation and reliability of the dealer and car manufacturer. -Make sure you read and understand any documents before you sign them.

From the list below, choose the three leading credit reporting bureaus that lenders access to check credit scores.

-Experian -TransUnion -Equifax

What tax deductions are considered statutory (those mandated by law)?

-Federal -Medicare -State -Social security

This person takes appropriate actions for both the landlord and the renter.

-Get everything from monthly payments to renter/landlord responsibilities in writing. -Purchase renter's insurance to cover any personal property against damage, loss, and theft. -Make sure all forms are complete and reference available if asked. -Know your privacy rights and any curfews in effect -Keep communication open between you and the landlord or managing agent.

If you are buying a used car, what are some actions you might want to take before purchasing a vehicle?

-Have a mechanic inspect the vehicle for any possible mechanical problems. -Research any records pertaining to recalls or accidents related to the specific vehicle. -Ask about any warranties or dealer-sponsored guarantees. -Look for pricing for similar models on the internet or other dealerships.

What are some of the things to consider when purchasing disability insurance

-How does the policy define disabilities? -What dollar amount or percentage is promised? How are amounts affected by Social Security and other factors? -For how long do the benefits last? -When do benefits begin being paid?

Which of the following deductions that the employee has voluntarily signed up to have deducted?

-Life Insurance -401K and other retirement/investment plans -Health Insurance -Stock Plan -Union or organizational dues

Before considering buying a house, you should make sure you are in sound financial shape. Choose from the list below some of the things you should do in order to be prepared to purchase a house.

-Look into special financing for first-time home buyers and explore federally subsidized loans. -Be aware of your credit rating and take steps to improve it. -Shop for interest rates that are available and identify any necessary pre-qualifications. -When shopping for a house, there are tips you can use to help your effort be more successful. Choose all of the tips below that are effective in making your search for a new home an easier process. -Look for houses in your price range and budget. -Choose a good real estate agent. -Use online mortgage calculators and amortization schedules to help you with working out possible payments. -Give the real estate agent a detailed list of what you want in a house (number of bedrooms, baths, levels, yard, and other specifics). -Decide on areas where you would like to live and visit these at different times of day to observe traffic patterns and other factors. -Think about the future, including both the needs of your family and possible income increases.

What are some types of taxes that you may pay in your lifetime?

-Property taxes -Sales taxes -Medicare taxes -Social Security taxes -Income taxes

When choosing the right organization to be a part of, what information is important to check beforehand?

-The "About" page on their website -Their contact information and Tax ID Number -Internet research and reviews -Their financial information -Accomplishments and track record -The organization's transparency

single ownersingle owner

-This person is the owner of the house. -This person is personally responsible for any repairs and actions to take care of the rental property.

managing agent

-This person represents a corporation that owns ten apartment complexes in town. managing agent -This person is a designated legal representative who can sign legal paperwork. -This person takes appropriate actions for both the landlord and the renter.

The Equal Credit Opportunity Act prohibits credit discrimination based on _______________.

-age -race or color -gender -your religion

Your insurance carrier may lower your premiums if you have safety features installed as part of your home. Select all that could possibly lower your premium.

-burglar alarm -fireproof roofing -fire extinguisher -deadbolt locks -smoke detectors

What are some items that the Federal Government uses citizen tax money to pay for?

-defense -roads -social security -medicare

In order to begin managing your debt, it is important to start with a manageable budget. What are the things most financial advisors consider essential for daily living?

-education -insurance -food -healthcare -housing

If you have comprehensive coverage on a vehicle, then the insurance company will pay for damages in case of _______________________.

-hail stones causing dents in your car -theft of wheels off your parked and locked car -you hitting a deer or a deer running into you -a broken windshield when a rock cracks the windshield

Creditors that need to collect on debts have certain rights, but they cannot harass you or violate your rights. Select all actions that creditors cannot do when trying to collect a debt.

-harass you -use any unfair practices such as lying -call you at work if your employer doesn't approve -call you before 8:00 a.m -call you after 9:00 p.m

In the video by Ron Blue, he advises individuals to do the following if they are in a financial crisis situation:

-make a budget -cut back on expenses to the bare minimum -use cash to pay off debt

Unsecured debts are debts that are not tied to any collateral or major personal property that can be repossessed or processed for foreclosure. Choose all below that fall into this category.

-medical bills -personal signature loans -credit card debt -store credit accounts

You may think that homeowners insurance would cover any damage to your house no matter what. However, unless you have a special adjustment or federally sponsored insurance coverage, which of the following would NOT be covered by homeowners insurance?

-mudslide caused by new construction next door -roof leak caused by you installing a new skylight improperly -earthquake damage -termite damage to wood framing -floodwater damage

What are some typical things not covered in most people's homeowners policies?

-normal wear and tear of paint, siding, and other similar items -flood damage, especially if you don't live in a floodplain -sewer backup or damage due to frozen pipes during severe cold -fraudulent claims or criminal acts -earthquake and landslide damage -damage from insects and vermin

Other than your monthly rental payment, what are some of the things you may have to pay for while living in a rental property? Choose all that apply.

-parking spaces -extra storage -utilities -laundry facilities -pets

Of all the types of credit offered to consumers, which ones are the worst because of their fees, interest rates, and effect on your credit rating? Choose two.

-payday loans -car title loans

What are some services within a community that are paid with tax revenue?

-police department -fire and rescue departments -library -public school -sanitation/waste removal

What areas fall under Law Enforcement and are paid for in part or whole by tax revenue?

-police/sheriff's department -courts and judges -correctional facilities -animal control

The Affordable Care Act requires all health insurance plans to offer certain essential benefits.

-prescription drugs -hospitalization -doctor visits -maternity and newborn care -preventative care

Choose all items listed that are potential costs associated with owning a home.

-property taxes -- either paid yearly or assessed through escrow payments -utilities such as electricity, gas, water, cable, and others -HOA fees, garbage collection fees, and landscaping fees -hazard insurance and/or PMI (Private Mortgage Insurance) -maintenance and repairs not covered in the closing settlement

Choose the typical benefits that a vision insurance plan provides coverage for.

-routine eye exams -discounts on contact lenses and eyeglasses -partial payment for laser surgery

Some options add to the value of a car like air conditioning and an automatic transmission. Choose from below items that add costs, but are not really worth the extra dollars.

-rustproofing (most cars have a 5 to 10-year warranty against rust) -auto club memberships -upholstery finishes -extended warranties by third-party sellers

HOA fees cover which of the following?

-water -landscaping -insurance -maintenance -garbage -sewer

Leasing a car could be a good option for you if _______________________. Choose all applicable answers.

-you want to drive a car that is under the warranty of the manufacturer -your yearly mileage is less than 10,000 miles -you want to drive a better car for less money -you prefer to trade cars often -you need a lower payment

Choose all of the conditions or factors that can affect the cost of a life insurance policy premium.

-your gender -drinking alcohol or smoking regularly -your occupation -your age -your health

How much of a down payment will you be expected to put down toward the appraised value of the home you plan to purchase?

10-20%

Whereas long-term disability can last a lifetime, short-term disability usually lasts for a maximum of _______________.

2 yrs

If you put less than _____ down you will be required to carry Private Mortgage Insurance (PMI) until you have paid down your mortgage principle to a suitable balance.

20%

HVAC (Heating and air conditioning)

3k-15k

What is a W-4 Form?

A form used by your employer to withhold the correct income tax from your salary

What is a lease?

An agreement between an owner and a tenant that outlines the obligations of both parties regarding renting an apartment or house

Has a high deductible, covers only essential health benefits, and simply provides a safety net for emergencies.

Catastrophic plan

This allows people that have a steady income to keep some property such as a car and home. The court approves a repayment plan that allows the use of future income to pay off debts.

Chapter. 13

This is known as straight bankruptcy and involves liquidating all assets that are not exempt. Anyone filing for this kind of bankruptcy must satisfy a "means test" that investigates their income closely.

Chapter. 7

The deflection of objects moving through the atmosphere due to the rotation of the Earth is called the __________ Effect.

Coriolis

What date indicates the end of the tax year?

December 31

When health insurance pays a claim for a patient, the amount covered is documented in a type of correspondence known as the ________________________.

EOB (Explanation of Benefits)

Co-signing a loan is an excellent financial decision.

FALSE

It's ok if you just briefly look at a contract before signing it.

FALSE

The federal agency responsible for disaster relief is known as:

FEMA (Federal Emergency Management Agency)

Tenants are protected against discrimination by the ___________________.

Fair Housing Act

In Ron Blue's video about credit cards, he states that when you use a credit card as opposed to cash, you will spend 34% less than if you just spend cash.

False

In the Ron Blue video within the lesson, Mr. Blue makes it clear that after running the numbers, leasing is always a better financial decision than buying a car.

False

The cost of utilities is often included in the price when you purchase your home.

False

When choosing to apply for a new credit card, things like airline points and cashback rewards should be considered of high priority.

False

What Federal department is responsible for enforcing laws related to consumer credit?

Federal Trade Commission

Features low premiums and high deductibles. Can be coupled with a health savings account to provide tax advantages.

HDHP

Limits coverage to providers within the network; a referral is usually needed from the primary care physician to see a specialist.

HMO/EPO

If you pay off your credit card balance during the allowed grace period each month, you should not be charged any ____________.

Interest

What is the credit utilization ratio?

It is a ratio of the amount of debt you owe to the amount of debt you have been approved for.

When should you receive your W-2 Form from your employer?

January 31st.

Insurance/Retirement Account Loans

Loans based on borrowed money from an existing account such as a retirement or investment plan that has to be paid back before using the account for retirement.

mortgages

Loans offered by financial institutions at lower interest rates that are issued for the purchase of a house or real estate property.

student loans

Loans offered to college students and their parents. Some are subsidized so no interest accrues until the student graduates. These loans can be federally funded or from private financial institutions.

Consolidation Loan

Loans that are either personal loans or second mortgages issued to borrowers to help pay off several other credit accounts by combining them into one loan.

Paying taxes is a biblical principle. In what book of the Bible does Jesus tell us to render to Caesar what is Caesar's?

Matthew

Specialization

Most insurance is sold by companies that specialize in a particular type of insurance.

Which of the following will use online contracts?

Netflix, Instagram

Do creditors always report activity on your account and all new accounts to the three credit reporting bureaus?

No, so some of your credit history may be missing from one or all three.

Gives you a choice of what provider you would like to use. Cost is more for out-of-network providers, but generally referrals are not required to see a specialist.

PPO/POS

All of the following people should receive W-2 Forms EXCEPT:

Serena, who is a freelance wedding photographer

Payday or Car Day loans

Short-term loans with high interest rates and fees that tend to reflect poorly on your credit rating.

Tenant rights, laws, and any protection afforded both tenants and renters are determined at what government level?

State

A very popular artist dies and is therefore no longer able to create more paintings. The paintings that he had created before his death now become the only ones that will ever be available. Demand is high, and supply is low. What would you expect to happen to the price of these paintings?

THE PRICE WILL INCREASE

To make sure some of your more expensive or special personal belongings such as jewelry, a camera, and similar items are covered under your homeowners insurance, you may have to designate or purchase a special adjustment to make sure you will be reimbursed if those items are lost or stolen.

TRUE

A product offered by financial institutions (usually banks) that offers a higher interest rate in exchange for the customer agreeing to leave a lump-sum deposit untouched for a period of time (6 months, 1 year, 18 months, etc.)

Taxed Accounts : Certificates of Deposit (CD)

Payments made by a company to the owners of a company's stock or bond

Taxed Accounts : Dividends on Stocks and Bonds

Similar to a Savings Account, however, you can write checks from this type of account

Taxed Accounts : Money Market Accounts

This type of account will be through your bank typically, and earns very little interest income

Taxed Accounts : Savings Account

What company is the leading source for most lenders researching credit information on a person applying for a loan or some type of credit?

The Fair Isaac Corporation

Please explain why the wind curves as it moves from high pressure to low pressure and if it causes any larger wind patterns. Please answer in 3 to 5 sentences using good grammar.

The reason why wind curves as it moves from high pressure to low pressure is because the earth is rotating, the earth itself is moving. It causes any larger wind patterns when storms have different directions of moving wind.

According to Ron Blue, the best type of mortgage to get is:

The shortest one with the lowest interest rate

How do a savings account and money market account differ?

You can write checks from a money market account, but cannot from a savings account

What is a credit score?

a "snapshot" of a person's creditworthiness at one point in time

Estate Tax

a federal tax on inheritance

income tax

a government tax based on a person's personal income

Social Security tax

a government tax used to help fund retirement benefits and disability payments

Instead of a set fee as a co-pay, coinsurance charges ______________________.

a percentage of the total cost

If personal debt gets out of hand and something needs to be done, what is one of the best sources you can go to for help?

a reputable credit counseling organization

Co-pay

a set fee usually associated with health care policies

Inheritance Tax

a state tax on inheritance

In the past few years, health care has been an important topic of discussion in America. The Supreme Court has even made rulings related to health care. Congress passed a bill commonly referred to as Obamacare, named after President Obama, who promoted the bill's passage. The actual health care bill is the ___________________.

affordable care act

1 Thessalonians 5:18 says to "give thanks in ______ circumstances."

all

Deductible

an amount set (usually on a yearly basis) that the consumer must pay before the insurance company is responsible for paying any amount.

A/An __________ is a rotating device with cups or blades, and as it rotates, the speed is transferred to a calibrated gauge which translates the rotation of the cups or blades to a speed in miles per hour.

anemometer

Tax-deferred accounts _________________________.

are taxed later when a person has retired and is in a lower tax bracket

Secured debts are usually connected to some sort of ___________________.

assets

proverbs 22:7 says the ______ is a slave to the _________.

borrower, lender

A department store-sponsored card offers special incentives to shop with the store, but it also carries higher interest rates. These cards _______________________.

cannot be used anywhere you want since they are sponsored by a specific store

Bankruptcy is an option for those deep in debt. Consequences can be long-lasting and far-reaching . The court grants a discharge that exempts those filing for bankruptcy from paying certain debts. A bankruptcy filing can stay on your credit report for ten years and can have a negative impact when you apply for other credit or getting a job .

check for blanks

The initial amount you have to pay when you go to the doctor or receive other health care is called the ______________.

co-pay

This kind of coverage will pay for repairs to your vehicle when you hit a tree or a parked car.

collision

A ____________ is defined as a group of people living in the same place or having a particular characteristic in common.

communiity

This is insurance that is usually coupled with an existing homeowners or similar policy, and protects against special circumstances such as natural disasters and property rights.

contingency insurance

What kind of credit is the most favorable to have on your credit report?

credit backed by assets or equity such as a house mortgage or car loan

There are two basic kinds of credit cards. The typical credit card is based on a/an ________ that is set by _________ , and it is linked to your ________ or personal request. The second kind of credit card is a ________ and it is more like a __________ because it is directly tied to a checking or savings account. All limits for this card are based on your _________

credit limit, the sponsoring financial institution, credit rating, secured card, debit card, account balance

To determine net pay, you subtract ________ from ________.

deduction, gross

How does good advertising affect the demand for a product?

demand will increase

Getting into debt can ________ God an opportunity to provide for our needs.

deny

health insurance

designed to help defray and/or pay for medical bills and services

homeowners insurance

designed to protect your home and property incase of a fire, theft, and other damage.

Automobile Insurance

designed to protect your vehicle and you from accidents and cover expenses for you and whomever is involved.

life insurance

designed to provide financial income in cases of death to loved ones and family

This is insurance that provides income in the case that you are temporarily or permanently disabled.

disability insurance

The Earth rotates towards the __________.

east

Supply and demand is a basic principle of:

economics

________________________ is when the price of something will move toward a point where the quantity demanded is equal to the quantity supplied.

equilibrium

In debt situations, compounding works in your favor.

false

It is mandated that all Fire and Rescue workers are paid.

false

It is part of God's plan for us to live an individual life, away from others.

false

You are not required by law to pay taxes.

false

When you do not pay off a credit card in full each month, you may potentially pay hundreds or thousands of dollars in ______________ fees.

financing

Most homeowners insurance will not cover flood damage. If you live in a _______________ you can purchase special flood insurance through the federal government.

floodplain or beachfront area

TSP

for people employed by the federal government

IRA

for people who want to put their money into a tax-deferred account at a bank or through their employer

401(k)

for people who work for public or private for-profit companies

457

for people who work for state governments, school, and universities

403(b)

for people who work for tax exempt or non-profit organizations

As winds blow over the surface of the Earth, __________ causes them to slow down.

friction

_________ wages are the amount you are paid for your work before any taxes or benefits are taken out of your paycheck. You will not receive this amount in your bank account.

gross

The Coriolis Effect will cause winds blowing from __________ centers to be deflected to the right (clockwise).

high-pressure

Part of owning a home is making sure you purchase ________ insurance. This type of insurance can provide coverage for ________ , ________ , and theft of personal property . Most lenders won't approve you for a mortgage or loan if you don't have _______ insurance. Investing in insurance is also part of being a good ________ of what God has blessed you with.

homeowners, liability for personal injury, fire and smoke damage, theft of personal property, a mortgage or loan, steward and witness

When should you contact your creditors if you are having any problems meeting your debts?

immediately

If demand for an item rises, and supply stays the same, the price will ________. If the demand for an item goes down, and the supply stays the same, the price will ________.

increase, decrease

As the Bible commands us in Philippians 2:4, " Let each of you look not only to his own ________, but also to the interest of _______."

interests, others

A contract is a __________ agreement between two entities.

legal

This is an insurance plan that is paid for while a person is working, to help with costs when the person is in need of rehabilitation care or nursing home services.

long-term care insurance

A tax deduction is a dollar amount that the IRS allows you to subtract from your adjusted gross income, or AGI, making your taxable income _________________ .

lower

Money in a flexible spending account is not taxed, but must be spent on ________________.

medical treatment, prescriptions, and supplies

Financial issues are never really a _______ problem, but are symptomatic of ________ issues.

money, heart

______ pay is the amount of money you actually get to take home, otherwise known as "take-home pay."

net

When we grow in relationship with ______________, we grow in relationship with God.

other

regular earnings

pay received for a person's regularly scheduled hours

overtime pay

pay received for hours worked in addition to regular hours

The costs for public education are mainly for what?

payroll expenses related to public school employees

This pays for personal items that are not covered under your homeowners policy, and are not any form of real estate.

personal property insurance

The amount paid by an insured party to the insurance company on a regular basis to cover the costs of the insurance policy is called the _______________.

premium

The "right to _____________" entitles the signer of a loan a certain amount of days to rescind, or cancel, the contract.

rescission

Most people participate in tax-deferred savings and investments accounts for ______________________.

retirement and travel

Contingency insurance covers things like _____________________________.

risks associated with hazards due to nature and similar damages not covered under regular policies

Equilibrium is where the quantity ________ equals the quantity _______.

supplied, demanded

In economics, _______ is the amount of a resource that producers are willing and able to produce for the marketplace. _______ is a consumer's desire to purchase goods and services and what they are willing to pay for those goods and services.

supply, demand

The bible is our manual in life, including how to take care of our bodies. I Corinthians 6:19-20 says "Or do you not know that your body is a ________ of the Holy Spirit within you, whom you have from God? You are not your own, for you were bought with a price. So glorify God in your _______."

temple, body

The least expensive kind of life insurance is _________________.

term life insurance

This Christmas, there is a huge demand for the hottest toy. Every parent you know is trying to make sure this toy is under the tree for their little boy or girl. What would you expect this rise in demand for a popular toy to do to the price?

the price will rise

If the market is over-flooded with a certain group of laborers (for example, construction workers), based on the law of supply and demand, what will potentially happen to the wages of these workers?

they could decrease

This is insurance that provides specified liability insurance against fraud and civil suits.

tort insurance

YTD (year-to-date)

totals for earnings and deductions for the year

Due to the Coriolis Effect, winds between the Equator and 30 degrees north or south latitude blow __________ the Equator.

toward

An Inheritance Tax is a State Tax.

true

Contracts can be legally binding, and should only be signed if both parties have completely read and understand what is stated in the contract.

true

Social Security taxes, also known as the "Federal Insurance Contributions Act" tax, provide benefits for retired workers and their dependents and for disabled workers and their dependents.

true

The idea of supply and demand is a basic principle of economics and is used to help determine the price and quantity of goods and services.

true

It is illegal for debt collectors to _______________________.

use abusive or deceptive practices to collect debt you owe

A wind __________ is used to show the direction of the wind.

vane

Another name for a wind vane is a __________.

weathervane

Which type of life insurance is typically higher in cost?

whole life, cash value policies

According to Proverbs 11:15, whoever cosigns for a stranger will_______________

will be hurt

__________ is the horizontal movement of air flowing parallel to the Earth's surface.

wind

What is the portion of an employee's wages that is not included in their paycheck because it goes directly to federal, state, and local taxes?

withholding

When you buy a new home, whose responsibility is it to make sure you have homeowners insurance that will replace the costs of building or repairing your home if it is damaged by fire?

you, the homeowner