FINL 041 Cumulative Review

10%

"By 2017, 60% of all U.S. retail sales will involve the Internet in some way." What is the percentage of retail sales made online in 2013? - 25% - 30% - 5% - 10%

earn

"Statistics prove it; The more you learn, the more you _________. "

secure

"https://" indicates you are shopping on a ________ website.

communication

Almost all employers agree that the most important skill needed in the workplace is _______________.

subsidize

Almost all utility companies have programs that will help __________ your utility bills if you qualify.

consequences

Although we are free to choose, we are not free to choose the ____________.

values (keeping your values will make your happy/ satisfied)

Always align your financial planning and decisions with your __________.

grace period

Always look at the ______ ________ that the credit card company offers. Most companies offer around 20 -30 days before you have to pay the bill without having to pay interest.

FDIC (guarantees your savings up to $250,000 per account)

Always make sure you use ________-insured deposit saving accounts.

do not

Always verify whether the loan is federal or private - government programs and protections ______ ______ apply to private student loans.

loan

An alternative for buying large cost objects on a credit card is to take out a ________.

consumer

As a __________, it is your responsibility to educate yourself about your rights and also to shop around and gather as much information as you can before making a purchase.

hard (think of Antiques Roadshow)

Coins, stamps, comic books, and artwork are all examples of _______ asset investments.

free offer

Companies use many strategies when selling goods and services. An example of a ______ _______ strategy is offering bulk goods for a better price comparatively than the individual goods.

framing

Companies use many strategies when selling goods and services. An example of a ________ strategy is presenting items as exciting or attractive to consumers.

habit

Companies use many strategies when selling goods and services. An example of a ________ strategy is refraining from putting popular items on sale because they know the items will be purchased regularly.

location

Companies use many strategies when selling goods and services. An example of a ___________ strategy is having the most expensive items at eye level on store shelves.

mortgage

a loan for the purchase of a home

insurance

a lump sum paid to get a leverage or protection against an incident of a large magnitude

liquidity

a measure of the extent to which a person or organization has cash to meet immediate and short-term obligations, or assets that can be quickly converted to do this

Chapter 13 (bankruptcy)

a much more conservative approach to repaying your creditors - an individual goes to their creditors and works out a solution to pay their debt in 3-5 years, with the creditors making some major concessions

inflation

a persistent, substantial rise in the general level of prices that causes money to lose its value

dependent

a person who relies on another for financial support

broker

a person whose job is to give you financial advice about your investments/ the people who handle customer orders to buy and sell securities

values

a person's principles or standards of behavior/ one's judgment of what is important in life

check register

a place where you keep track of the money that is coming out of your checking account/ this is used when balancing your checking account

mutual funds (stocks)

a practical, cost-efficient way to help build a diversified portfolio of stocks, bonds, or short-term investments

risk

a probability or threat of damage, injury, liability, loss, or any other negative occurrence that is caused by external or internal vulnerabilities, and that may be avoided through preemptive action

exemptions

items that can be deducted from one's total income before taxes are assessed and that reduce your obligation to pay taxes

hard assets

items that you save over time that you hope will increase in price/ collectable investment tools

financial literacy

knowledge about money and its management

saving

money put by/ the excess of income over consumption expenditures

deductions

money subtracted by your employer from your gross income for specific purposes, such as insurance or investments/ a required payment

credit

money that a lender will let you use, usually for a fee, and allow you to pay back in the future

income

money that is earned from work, investments, business, etc

expenditure

money that is spent on goods or services/ a purchase

perks

other things provided by employers such as a fitness center at the office, free lunch every Thursday, or babysitting services

creditors

people you borrow money from

savings bonds

securities that can only be redeemed by the person named on the bond/ they cannot be sold or transferred to anyone else

simple interest

a quick method of calculating the interest charge on a loan - multiply the daily interest rate by the principal by the number of days that elapse between payments

Chapter 7 (bankruptcy)

a relatively straightforward process where you liquidate all your assets to pay your creditors what you owe - if you do not have enough assets to pay those debts, the creditors lose out on the money

rebates

a return of a portion of the purchase price of a good/ this is often used by companies as a positive incentive for consumers

insurance

a safeguard that will lessen risk

dividends

a sum of money paid regularly by a company to its shareholders out of its profits

inheritance tax

a tax imposed by only six states (Indiana, Iowa, Kentucky, Maryland, Nebraska, New Jersey, and Pennsylvania) that requires a payment on property you gain as a result of a death

state income tax

a tax on individual incomes to help run state governments, typically about half as expensive as federal income taxes

estate tax

a tax on your right to transfer property at your death consisting of an accounting of everything you own/ your assets at the date of death/ you have to be extremely wealthy to be required to pay this federal tax, but some states require a state ________ _____

property tax

a tax paid by people who own real estate which is usually how local governments get their incomes

luxury tax

a tax usually charged to big market sports teams because it keeps teams from "buying championships"/ attempts to even the playing field

internship

a temporary paid or unpaid position that involves direct work experience in a career field

debt consolidation

a widely used term that can imply the use of a number of different debt assistance plans that combine multiple debts, loans or payments 1. Check your credit reports + credit score 2. Take an inventory of your debt 3. Research your consolidation choices 4. Pay off your loans as quickly as possible

cosign

signing for another person's debt which involves a legal obligation made by the cosigner to make payment on the other person's debt should that person default

ponzi scheme

similar to a pyramid scheme, this involves a criminal creating a fraudulent investment scheme with investors promised high returns and low risks/ schemes created to steal your money

income

something coming in/ a gain usually measured in money that derives from labor

goals

something that you are trying to do or achieve/ To improve your financial future, it is important to set _______.

money

something used as a way to pay for goods and services and to pay people for their work/ a person's wealth

preferred stock

stock bought from a company that is established, so the risk of not being successful is low/ these tend to cost more money initially

penny stocks

stocks for brand new companies that are attempting to sell something that has not yet been tested in the market

securities

stocks which are a portion of ownership in a company

goods

tangible products or items that consumers purchase

periodic rate

the APR divided by the billing cycles per year - APR/Period Cycle

marginal benefit

the additional or extra benefit associated with an action

marginal cost

the additional or extra cost associated with an action/ the added value of what has to be sacrificed or given up

IRS (Internal Revenue Service)

the agency tasked with the collection of federal income taxes

late fees

the amount charged if you don't pay your bill on time

(insurance) premium

the amount of money you have agreed to pay the insurance company for their coverage, usually divided into a monthly cost

deductible

the amount of money you need to pay before the insurance company pays the rest

withholding

the amount taken out of your check to pay various taxes before you receive your pay/ these include federal and state income tax, Social Security, and Medicare

stock market

the business of buying or selling shares of stock

stocks

the capital raised by a business or corporation through the issue and subscription of shares

cash

the easiest payment tool to understand and use - you simply pay what you owe without penalties, interest, overdrafts, etc.

insider trading

the illegal trading of a company's stock by people using confidential company information ex. Martha Stewart

scarcity

the limited nature of resources/ a very small supply

credit limit

the maximum amount that you can borrow from your lender

ADB (average daily balance)

the method for calculating your finance charge on credit card balances - When purchasing a credit card, pay attention to whether the lender is going to charge you an ______ excluding or including new purchases.

savings

the most viable alternative to credit

opportunity cost

the next best alternative to an action/ what you would have done if you didn't make the choice that you did

grace period

the number of days you have to pay your bills before the lender can charge interest

upward mobility

the opportunity to gain increased and more complex responsibilities resulting in a higher income

investing

the outlay of money usually for income or profit

career planning

the process of identifying your skills and interests, setting career goals, and working to build on your skills and achieve those goals

prime rate

the rate most reputable banks will charge their most trustworthy borrowers

interest (or APR)

the rate you will be charged for each year you are in debt to the lender

interest (payments)

the rent you pay for borrowing money/ most of these come from the annual percentage rate or APR

noninstallment credit

the simplest type of consumer credit where an individual has to pay a lump sum amount of credit instead of making monthly payments/ it is an excellent way to avoid interest payments

minimum (monthly payment)

the smallest payment your creditor will accept per month

debt

the state of owing money to someone or something

finance charge

the total cost of the loan

progressive tax (graduating income tax)

this tax takes a larger percentage of income from high-income groups than from low-income groups and is based on the concept of ability to pay ex. federal and state income taxes

regressive tax

this tax takes a larger percentage of income from low-income earners than from high-income earners ex. taxes on tobacco, alcohol, gasoline, jewelry, perfume, and travel

net income

this type of income is the amount of money that you make after any taxes or other deductions are taken out/ the actual amount you have to spend

taxable income

this type of income is the amount that the federal and state government base how much you owe them each year/ most income is taxable by the IRS

gross income

this type of income is the money earned before any taxes or other deductions are taken out

passive (unearned) income

this type of income is the money that you earn from investments ex. a checking account could earn money from interest

branding

Companies use many strategies when selling goods and services. An example of a ___________ strategy is placing a store's brand products next to higher priced alternatives so that they sell more.

influence of others

Companies use many strategies when selling goods and services. An example of an ___________ ____ ________ strategy is family package discounts.

consumer expectation

Companies use many strategies when selling goods and services. An example of an ___________ ____________ strategy is taking advantage of the placebo effect.

altruist

Companies use many strategies when selling goods and services. An example of an ___________ strategy is charging higher prices for "free range" eggs because it is deemed more humane.

earned income

this type of income is the money you receive from working: your wages, salary, bonuses, tips, etc./ this can also mean the benefits you received for working at a company

gifting scheme (chain-letter scheme - a pyramid scheme without phyiscal products)

this type of scam tells you to send a gift, usually of money, to the top ten names on a list with the promise that your investment will be returned to you by others recruited down the line

inflationary raises

this voluntary benefit insures that your paycheck is increased in accordance with inflation ex. If your salary increases 1% each year and inflation increases 3%, you are getting paid 2% less than the previous year

life insurance

this will provide for your loved ones when your income is no longer available

consumers

those who buy products

personal loan

unsecured financing for use in a variety of endeavors which involves an application review based on your income, credit rating, and other financial data.

(insurance) benefits

what exactly you are getting from the insurance company

negative return

when a risk results with you losing money

positive return

when a risk results with you making money

pension

when an employer commits to paying you a fixed amount of money when you retire after you have worked for them for a required number of years/ one of the most lucrative benefits offered

excessive debt

when individuals owe considerably more debt than they can feasibly pay off when they receive their paychecks

risk

when you are unsure if you will have a positive or negative return from an investment

claim

when you ask the insurance company to pay an amount of money out of your policy

economic growth

when you make money the previous year after adjusting for inflation

financial growth

when you or your company makes money

proportional tax (flat tax)

with this tax, each individual or household pays a fixed percentage ex. low-, mid-, and high-income taxpayers would pay 10%

net salary

your income after taxes are taken out

mortgage equity (home equity)

your share of the value of your home/ what you truly 'own' and have an interest in.

impulse

Constant reminders of your goals, such as a list or photos, should limit your ________ buying because you know what you want and have a plan to make those goals a reality.

peer pressure

Consumers have a tendency to buy things that they don't necessarily want but that will make them feel equal to their peers.

budget (Step 3. Financial Planning)

Create a __________ —This will help you reach your financial goals.

April

Each year on ________ 15th, Americans have to submit their tax returns to make sure they have paid their fair share of taxes to the federal government.

education (or training)

Employers will often provide money for their employees to further their __________ in their professions. Offering this is not only helping their employees, but it also helps the company.

skills

Identify any ______ that you will need to develop for your chosen career and add them to your written career plan.

income

If I am retired and on a fixed income, I would move the majority of my mutual funds to _________ funds to make sure I can always get an amount to pay my bills each month.

homeowners

Most lenders will require that you have adequate _____________ insurance so that if something terrible happens to your home, their loan is protected.

compounded (not simple)

Most loans require _____________ interest fees.

compound

Most loans, including credit card debt, are ____________ interest loans.

bundle

Most providers of services like internet and television have major discounts if you __________ all your services with them.

minimum (in some cases it is as low as $25)

Most savings accounts require a ___________ deposit to keep the account open.

waived (you are in charge and knowledge is power)

Nearly 9/10 cardholders have successfully had a late payment fee _________ after asking their credit card company about it, and 2/3 had their requests for a lower interest rate approved.

city utility company

Of the organizations mentioned in this lesson, which of the following is it not necessary to contact regarding identify theft? - local police department - three major credit bureaus - Federal Trade Commission - city utility company

contests

Often companies will have __________ so that you can win something if you purchase their products. This an an example of a positive incentive.

revisit

Oftentimes, emotions cause impulsive buying - walk away and __________ whether that item is still a "want" in a couple of days.

Balance

On a check register, ___________ is how much money you currently have in your checking account.

Code (or Item #)

On a check register, ___________ is where you record how you pay for a particular transaction. This can be the number on the check you write.

Deposit Amount

On a check register, ____________ ___________ is the amount of money you put money into your account.

increase (they want you to use their card because they want your business)

Revolving open-end credit companies might ___________ your spending limit without your knowledge, which could lead to unplanned debt.

proportional

Sales tax is an example of a ___________ tax because all consumers, regardless of income, pay the same fixed rate.

reward

Some companies have a _________ system so that each time you purchase something from that company, you earn points toward future purchases. This an an example of a positive incentive.

penalty fees

Some lenders charge ___________ ______ because they do not get all the interest they planned to receive on the loan. Make sure your loan is structured so that there are no significant penalties for paying it off early.

expand

Sometimes when a company wants to ________, it will sell you a bond. -You let the company use your money for a set period of time, and the company will guarantee you a certain interest rate on your investment.

retirement

Start planning now for ___________. In 1933, when Congress passed the Social Security Act, there were approximately 6.7 million Americans who lived over the age of sixty-five. In 2012, that number was 43.1 million! Social security may not be around forever.

Do not spend more than you can pay back.

The best money-management strategy is which of the following? - Keep a list of all your debt. - Pay your debts on time to assure loan companies that you're a good risk. - Keep a list of all your income. - Do not spend more than you can pay back.

10

Try to save at least _____% of your monthly income.

low

US Savings Bonds do not provide liquidity, but double in value when mature and are _____-risk investments.

all of the above

Understanding and implementing sound money-management principles contributes to which of the following? - financial success - staying out of debt - distinguishing needs from wants - all of the above

signature (an institution will loan you the money with just a signature)

Unsecured loans are commonly known as "__________" loans.

simple

Usually the best type of loan would be a __________ interest loan.

higher

Usually, the _______ the risk, the higher the return on an investment.

conservative

We urge you to be prudent in your planning, to be ______________ in living, and to avoid excessive or unnecessary debt.

all of the above

What are things you should know about when considering retirement? - healthcare costs - inflationary rates - employee contribution plans - all of the above

true (these are given out by a financial institution in denominations of $20, $50, and $100)

T/F - Instead of having to do a currency change in all the areas of the world, you can use travelers' checks instead of cash.

false (insurance can soften risk, but not eliminate it completely)

T/F - Insurance can take away risk.

true

T/F - Insurance companies are often willing to negotiate the price they charge for their services.

false (they increase when inflation increases)

T/F - Interest rates on credit don't increase when inflation increases.

true (Laws exist to protect the consumer from fraudulent charges)

T/F - It is illegal for a company to take your money without delivering a good product.

true (American employers' biggest complaint is not being able to find people with the skills, training, and education that they need)

T/F - Keep yourself current on the latest advancements in your career field.

false (they are typically not available at credit unions)

T/F - Large loans are available at your local credit unions.

true (your check will have your address and other information on it, a money order will only have the requested funds, so your location can remain anonymous)

T/F - Merchants prefer money orders to checks because they know that the money is guaranteed and it is safer.

true (causing relationships with friends and acquaintances to decline)

T/F - Most bankruptcies are listed in local newspapers.

true

T/F - Most wealthy Americans have a lot of assets, but they do not have a lot of liquidity.

true (to get somewhere, it is important to first know where you are headed and why)

T/F - Not setting financial goals is the primary reason why many people drift through life without achieving any financial progress.

True (the need for us to fit in often causes us to make poor financial choices)

T/F - One of the biggest reasons people spend more money than they make is to maintain a certain social class.

true

T/F - Only the person whose name is on the savings bond can have it redeemed.

true

T/F - Paying back the money owed to lenders that gave you credit is the key to building a credit history.

true

T/F - Paying car payments on time and in full each month gives an individual a chance to repair his/ her credit score.

true (a loan is a long-term commitment - be aware of its terms)

T/F - Read all of the small print and ask the lender any questions that you have before signing a loan application.

true

T/F - Statistically, college graduates make more money than non-graduates.

true (the cost of student loans is usually worthwhile)

T/F - Student loans can be good debt if the end result means a greater salary, greater marketability, and greater chance to rise through a company.

true (list your bank information on line 11b of your 1040EZ)

T/F - The IRS will directly deposit your refund into either your checking or savings account.

true (Today, the FDIC insures money placed in banks)

T/F - The bank is the safest place for your money.

true (liquid assets can be quickly converted into cash)

T/F - The ease with which a stock can be bought or sold and converted to cash determines its liquidity.

false (they will not)

T/F - Vague wishes can lead to success.

true

T/F - When production stops, prices rise to help offset the lack of buying - Even if you do not have a lot of debt, you are still paying the higher prices for goods for those who do have a lot of debt.

true (every deposit made by members allows them a claim in ownership)

T/F - When you deposit money in a credit union, you can claim part ownership in that credit union.

true

T/F - When you put gas in your car, you will probably pay a federal sales tax, a state sales tax, and a local sales tax on each gallon of gasoline that you purchase.

true

T/F - You cannot claim to be a dependent on your own W-4 form.

false (checks are easily sent in the mail and you receive proof that your checks were cashed through your financial institution)

T/F - You should not send checks in the mail.

false (your actual rate is influenced by your credit rating)

T/F - You will always pay the exact ARP rate listed in bold on a credit card application.

true (so long as you provide at least 1/2 their support, and they live with you at least 1/2 the year)

T/F - Your children if they are younger than 19 and not college students or under 24 if they are full-time college students can be listed as dependents.

false (they can be listed as dependent so long as they do not make more than $3,700 in the tax year you are claiming them)

T/F - Your elderly loved ones cannot be listed as dependents.

mutual

Tax-deferred investments are relatively safe, but are attached to _________ funds, so the stock market's decline will affect their worth.

100,000

The 1040EZ is a federal form usually used by single people or married couples who do not make any more than $__________ a year.

450 (to 550)

The 2013 State of the American Workplace Report estimates that widespread disinterest and unhappiness in the office is not only affecting company performance, but is costing the U.S. $_______ billion a year."

college

The American Bankruptcy Institute reveals that 19% of the people who filed for bankruptcy last year were __________ students.

investment markets

The Federal Trade Commission and the Securities Trade Commission are responsible for protecting the integrity of the __________ __________.

1.45

The Medicare tax rate withheld from your paychecks is ______%.

all of the above

The Occupational Outlook Handbook allows you to select occupations by which factors? - average pay - entry-level education - on-the-job training - all of the above

16 (ratified in 1913)

The _____ Amendment to the United States Constitution gave Congress the power to assess taxes. - "The Congress shall have power to lay and collect taxes on incomes."

FTC (Federal Trade Commission)

The _______ is a US government agency that is tasked with making a fair and competitive marketplace./ you can call them to initiate complaints about false advertising and identity fraud

low

The _______-income person's tax burden is relatively much higher with a flat tax.

finance

The ________ charge is the total cost the lender is charging you to use their money - It includes the interest plus any additional fees.

Better Business

The _________ ___________ Bureau is a nonprofit organization focused on advancing marketplace trust./ They can alert consumers about local businesses that have had complaints lodged against them.

Family and Medical

The __________ ____ _________ Leave Act entitles employees to take unpaid leave for family and medical emergencies for a specified amount of time while protecting their jobs.

quicker

The __________ you pay off a loan, the less interest you will be charged by the lender.

convenience (it is harder to stick to your budget if all you have to do is swipe the card)

The ________________ of debit cards often makes buying items and forgetting to record transactions too easy.

budget

The amount you will be able to charge on your credit card each month is equal to the amount your _________ allows for card payment.

8,900

The average property damage cost of a car accident in 2012, according to the National Safety Council, was $_______.

Set one goal at a time

What is NOT the best way to set financial goals? - Set one goal at a time - Start setting financial goals when you are young. - Talk about your goals with others. - Put your goals in writing.

all of the above

What is a good example of noninstallment credit? - 30 days same as cash - 30 days free interest - 90 days same as cash - all of the above

all of the above

What is a good way to repair damaged credit? - use cash for all your purchases - pay off your credit cards and loans ASAP - refrain from using your credit cards - all of the above

all of the above

What is an important factor to consider for job satisfaction? - job criteria - financial issues - work culture - all of the above

all of the above

What is an important financial issue to consider as you are choosing a career? - average starting salary - benefits and incentives - stability and economic security - all of the above

all of the above

What is an important goal to include for developing a written career plan? - education and training - income - skill development - all of the above

accumulating debt

What is not the best way to solve your financial problems? - spending less than you earn - earning money - accumulating debt - creating a budget

$29,000

What is the approximate amount of debt that the average college graduate accrues? - $13,000 - $35,000 - $29,000 - $40,000

a. ($15,000 )

What is the average amount of debt American households carry month to month? a. $15,000 b. $10,000 c. $40,000 d. $20,000

more

What is the best purpose for keeping track of your money? - to make sure you do not spend _______ than you earn

interest

What is the best way to describe a consumer's "cost of credit"? - what consumers will pay for using credit from a lender, often referred to as _________ payments

helps

What is the best way to describe how the economy affects your personal finances? - Spending money ________ the economy, but when interest rates are higher you are not able to spend as much.

entire

What is the best way to reduce credit card balances? - Pay the ________ amount due each time you make a purchase.

available

What is the biggest disadvantage to investing in a certificate of deposit? - Your money is not readily _____________.

translate

What is the definition of the term FICO? - a way to ___________ a person's credit history into a number system resulting in a credit score

liquidate

What is the main purpose for filing for bankruptcy? - to __________ your assets in order to pay your debts

all of the above

Which of these are types of income? - net and passive - earned and unearned - gross and taxable - all of the above

First Trans-Nation

Which of these is NOT one of the three credit bureaus in the business of tracking your credit and providing you with a credit rating? - Equifax - First Trans-Nation - TransUnion - Experian

employee contribution plan

Which of these is a defined benefit plan? - voluntary benefit plan - mandatory benefit plan - employee contribution plan - all of the above

long-term mutual funds

Which of these is a low-risk investment? - long-term mutual funds - short-term investments - high-yield bonds - a pyramid scheme

all of the above

Which of these is a necessary consideration when creating a risk management plan? - prevention plan - backup plan - potential impact - all of the above

all of the above

Which of these is an example of income? - money earned from a part-time job - money won at a poker game - money received as a gift - all of the above

where you live

Which of these is not a factor in determining your credit score? - amounts owed on loans - payments for loans are on time - where you live - late payments on any loans

project sales

Which of these is not a strategy companies use to get consumers to purchase their products? - project sales - analyze consumer expectations - notice the influence of others on consumers - locate a product for the best exposure

location

Which of these is not included on the list of the other 20 skills necessary in the workplace? - people skills - patience with others - judgment - location

revolving credit score credit

Which of these is not one of the three types of credit discussed in lesson 5.4? - installment closed-end credit - noninstallment credit - revolving credit score credit - revolving open-end credit

a mortgage

Which of these is the best example of "good debt"? - a mortgage - a loan for furniture - an equity line to remodel your home - a loan for a fancy sports car you want

Credit unions

____________ _________ have a tendency to charge lower interests rates on loans and often provide higher interest rates on savings and investments.

Coupons

____________ allow you to save money on certain purchases. This an an example of a positive incentive.

Finances

____________ are the #1 reason that students withdraw from college and what gives them the most stress.

Conservative

____________ investment strategies are low risk but you do not have immediate access to your money. If you need to access your money, there will usually be an early withdrawal penalty.

Moderate

____________ investment strategies involve investments associated with the stock market/ buying stocks in companies of your choice. This requires patience, but you can get a little higher return.

Secured

____________ loans require collateral but usually offer more money at lower interest rates than unsecured loans.

Prioritize

____________ your goals, and determine which one you would like to accomplish first.

Consumer protection

_____________ _____________ laws protect consumers from false advertisements, fraudulent businesses, and identity theft.

Emotions

_____________ are the reason that people buy brand name products.

noninstallment

_____________ credit is usually offered for a short term. If it is extended, be sure to take advantage of the opportunity.

Incentives

______________ are used to encourage people to make certain choices. These can be positive or negative.

Aggressive

______________ investment strategies are high risk but often have high returns. You take the risk of losing money quickly if it is a bad investment, but you can make more money quickly if it is good.

Insurance

______________ is purchased to guarantee that if something happens to you (life insurance) or items you have purchased (car insurance/ home insurance), you have some protection against loss.

Diversification

______________ is the key to any wise investment strategy.

repossessed (repossession doesn't just hurt the person losing an item, but all the members of the credit union/ lender will have to help recover that debt)

______________ items are taken possession of by a lender because the consumers hadn't paid their agreed-upon payments.

Reevaluate

______________ your goals and make necessary changes, making sure you are getting one step closer to your goals.

Reevaluate (Step 9. Financial Planning)

______________ your goals—This is a journey, not a destination. You may have to revise your goals so they will more adequately match your financial income.

Compounded

_______________ interest is charged over the entirety of the loan/ interest that creditors add each year based on what your principal balance is.

credit card

a card linked to a lender that allows you to postpone payment

bonds

a certificate issued by a government or a public company promising to repay borrowed money at a fixed rate of interest at a specified time

fraud

a company or person trying to entice you to do something by using deceitful tactics/ this is illegal

credit history

a compilation of how a person has paid their bills, which shows whether the subject is typically late with payments, has defaulted on an obligation, or has filed for bankruptcy

bankruptcy

a condition of financial failure caused by not having the money that you need to pay your debts

loan length

how long it will take you to pay off that debt

advertisements

information that companies pay for to entice us to purchase their products

disability insurance

insurance which ensures that if you are physically unable to work, you can get payments to help provide for your needs

services

intangible products that a person or something does for a consumer ex. lawn mowing service

compound interest

interest calculated on the initial principal and also on the accumulated interest of previous periods of a deposit or loan

income (mutual funds)

investing in companies that are established and probably will grow/ these mutual funds, if invested properly, will provide a constant return/ they have much more liquidity

diversification

investing in several different companies so if one fails, you are not hit as hard - you still have investments in other companies

growth (mutual funds)

investing in start-up companies that could become extremely successful or fail completely/ these give you the ability to make some real money, but the risk is much greater/ these have less liquidity and require more patience

IRAs (individual retirement accounts)

is a form of retirement plan, provided by many financial institutions, that provides tax advantages for retirement savings

pyramid scheme

a dishonest and illegal business in which many people are persuaded to invest their money and the money of later investors is used to pay the people who invested first

scam

a dishonest way to make money by deceiving people/ a fraudulent or deceptive act or operation

recession

a downturn in the economy

deception

a form of trickery involving the selling of goods or services to consumers

pin number

a four digit number that you have selected that needs to be inputted to have access to the funds in your checking account

contract

a legally enforceable binding agreement between two or more persons

track

A disadvantage to traveler's checks is that you have to ________ your spending like you do with cash.

electronically

A disadvantage to using cash includes the fact that it does not transfer ____________. This makes paying bills with cash much more complicated.

danger

A disadvantage to using cash is ____________. Carrying around a lot of money can endanger your money and yourself.

four

Most American families own at least ______ credit cards today.

labor intensive

A disadvantage to using cash is that keeping track of cash purchases is more _______ ___________.

higher

A FICO score will be anywhere from 300 to 850; the _________ your score, the better your credit worthiness.

W-4

A ___-___ Form is filled out when you are hired. On this form, you must list and dependents or exemptions, and your employer will reduce the amount they need to deduct from your paycheck.

grace period (Be sure that you understand the grace period policy of your lending institution.)

A ________ _________ is a time during which a debt may be paid without interest or penalty.

money order (if you do not have a checking account but need to send money through the mail, this option is the best for you)

A ________ _________ is when you go to the bank and they write an official check for you. You give them the cash, and they issue the check to whomever you want the check written to.

low

A ________ credit report score usually indicates to the creditors that the risk is high, you may fail to pay your bills, and are often late with payments.

high

A ________ credit report score will tell the creditors that you have paid your bills and have been on time paying your bills.

budget

A _________ will help allocate funds for the financial goals you set.

healthy

A ___________ economy will make it much easier for you to reach the goals you have set for yourself.

checking

A ____________ account is usually used to pay bills, and does not hold money for long periods of time. Banks will not pay a lot of interest on these accounts. Writing a check will decrease the amount in this account.

deception

A company's statement that indicates it can cure cancer without medical support is an example of which of the following? - deception - expectations - framing - altruism

check (it is also similar in that it doesn't accrue interest)

A debit card is also known as a _______ card because it functions similarly to writing a _______ in that the funds come directly from your bank account.

stolen (or lost)

A disadvantage to traveler's checks is that they can be _____________, like cash, checks, or credit cards.

aptitude

A good _________ test will give you an indication of what skills you possess and what kind of careers match those skills.

renters

A landlord who rents out his apartments probably has homeowner's insurance on the building, but not on the contents in the apartment that you are renting - consider _________ insurance for the your items that are in the property.

individual retirement (Account)

A savings account set up by an institution with tax breaks because the government wants you to save.

Money Market (Account)

A savings account that offers higher interest rates because a higher minimum balance is required and there are limitations on how much you can withdraw.

Certificate of Deposit (CD)

A savings account where you commit to a lender that you will not withdraw your money for a specified period of time so you can earn a higher interest rate./ Beware of penalty fees for early withdrawals.

medicare (1.45%)

A small percentage of the FICA money you pay each month goes to assure you will have health insurance when you retire, with _____________.

federal income tax

A tax levied by the United States Internal Revenue Service (IRS) on the annual earning of individuals/ the largest tax that most Americans will pay

payment plans

A type of advertising strategy is to appeal to __________ ________. Make sure you are aware of the term, commitment, and interest cost. ex. buying an expensive TV and setting up a payment schedule.

impulsive

A type of advertising strategy is to appeal to __________ purchases. ex. strategic placement of items in their stores

celebrities

A type of advertising strategy is to appeal to _______________. This type of endorsement pays the influential individual thousands of dollars. ex. Lebron James suggesting a type of shoe.

intelligence

A type of advertising strategy is to appeal to our _______________. ex. If 4/5 doctors recommend a particular product to you, why would you not buy that endorsed product? You learn from the advertisement that if you are smart, you will follow their advice.

emotions

A type of advertising strategy is to appeal to our _______________. Often, if the advertiser can get us to laugh or cry during an advertisement, we will be more likely to purchase their particular product.

progressive

Most Americans think that the fairest tax is a ___________ tax.

including

ADB ___________ new purchases - Companies who use this method will charge interest on the balance plus any new purchases made in that billing cycle. - To calculate this, you have to divide the number of days in the billing cycle - Periodic Rate x Average Daily Balance = Monthly Finance Charge

excluding (this is cheaper than adding interest for each purchase over the month)

ADB ___________ new purchases — Companies who use this method only charge interest on the balance, and it does not matter if you make purchases during that billing cycle. - Periodic Rate × Balance = Average Daily Balance

30 (70% are not reaching their full potential)

According a Gallup study, only ____% of American employees feel engaged or inspired at their jobs.

7 (to 10)

According to CNN Money, "One basic rule of thumb is that the death benefit on your (life insurance) policy should equal ____ times the amount of your annual salary."

6

According to Esurance, "There are more than ____ million car accidents in the U.S. each year, on average."

84

According to an article by Tiffany Hsu, "People with a bachelor's degree make ____% more over a lifetime than high school graduates."

c (123456 and password)

According to lesson 4.4, what were the most commonly used website passwords in 2013? a) a person's first name b) a person's phone number c) 123456 and password d) a person's Social Security number

53 (it is estimated that 30 million people will remain uninsured in 2022)

According to the CBO, Congressional Budget Office, there are ____ million uninsured persons in the United States.

9,700

According to the Healthcare Cost and Utilization Project, "In 2010, the average cost per hospital stay was $________."

d. (between $15,000 and $16,000)

According to the lesson, the average American household has accumulated how much credit card debt? a. over $20,000 b. between $10,000 and $12,000 c. below $10,000 d. between $15,000 and $16,000

deceptive

Advertising is generally considered ___________ under federal law if it involves... - An omission causing false beliefs about the product. - Consumers having chosen differently if there had not been deception. - Someone having been/is likely to be injured as a result of the deception.

limit

After assessing the risk by loaning you funds, the credit card company will set a spending ______ on that card.

housing

After graduating from college, students are moving back in with their parents at an alarming rate because the cost of ___________ exceeds their ability to pay with the entry-level corporate jobs they qualify for.

risk

After you have created a plan for your financial future, you need to evaluate the ______ involved in each of your decisions.

managers

Any company worth investing in will have a website that lists the senior ___________, how long they have been with the company, their backgrounds, and the company's history.

principal

Anytime you borrow money, the amount you borrow is called the ____________.

greater than (or equal to)

As long as the marginal benefit is ________ _____ the marginal cost, then the choice would be rational.

time

At loan agencies, you are usually given a certain amount of _______ to pay off a loan.

30

Most Americans will work for at least ____ years in one or more careers.

c. (300 to 800)

Based on the reading, what is the range of credit scores? a. 1.00 to 4.00 b. 1200 to 2000 c. 300 to 800 d. 100 to 250

postpone

Be cognizant of the societal pitfalls that will require you to _______________ your purchase until a better financial time.

charge

Be in ________ - take control of managing your own financial future and learn to be financially literate.

higher

Because banks/ credit unions intend to accumulate savings for future use, they usually offer slightly ___________ interest rates.

debt (the state of owing money to someone or something)

Because it would take us several years to be able to purchase big-ticket items such as a car, an education, a vacation, or a house, we go into ______ to buy items now and pay for them later.

profitable

Before investing in a company's stocks, research if that company is ______________. - Look at the quarterly earnings and determine who is buying their product.

insured

Before opening an account at a credit union, make sure you ask if they are federally _________.

positive

Being paid $15 to mow the lawn is an example of a ____________ incentive.

death/ taxes

Benjamin Franklin, wisely once said, "In this world nothing is certain but _______ and _______."

scams

Beware of loan ________ - You don't need to pay for help to find money for college and only input your information on secure websites.

liability

Bonds usually do not have as much __________ as shares do.

10

Both 401(k) and traditional IRA plans impose penalties on early withdrawals - if you withdraw money before age 59 ½, you will pay up to ____% in additional taxes.

equal

Both the employee and the employer pay _______ shares to an employee's Social Security fund. This is a non-voluntary benefit, meaning that both parties must pay it.

c. (He decides to take the job and never return to school.)

Brian wants to go to college and has saved the money he needs to get started. A friend approaches Brian and says there is a great opportunity to make $10 per hour at a company. Which decision is most likely to NEGATIVELY affect Brian's upward mobility? a. He passes up the job opportunity and continues at college. b. He checks out the company and works there over the summer to help add to his savings. c. He decides to take the job and never return to school.

contractual

Budgeting items that you have made a ______________ agreement to repay needs to be addressed first and foremost in your budget. Only after that can you pay for additional wants.

stress

Budgeting, goal setting, and planning can help to reduce your _________.

double (the credit company will have to decrease the amount of interest payment each month because you owe less on the principal)

By making minimum payments only, you are not paying any money towards the principal, just the interest. Always figure out the interest amount, and then pay at least __________ that amount per month.

c. (January 31 of each year)

By which date are employers required to give employees their W-2 form? a. April 15 of each year b. December 31 of each year c. January 31 of each year

monthly

Most credit card companies charge a periodic interest rate which is usually __________.

low (federally insured by the FDIC)

Certificate of Deposits and Savings Accounts are ______-risk investment options. They have very low interest rates attached to them.

business

Chapter 11 is bankruptcy for people whose _____________ has incurred more debt than it is making. The individual will lose their business or livelihood.

7 (even though it only takes 3-5 years to pay off the debt)

Chapter 13 bankruptcy will be recorded on your credit report for the next ___ years.

individuals

Chapter 7 and chapter 13 bankruptcies are used for _______________ who do not make enough money to repay what they owe.

13

Chapter _____ bankruptcy seems like a better solution for creditors because they receive at least some of the money you owe them.

signature

Credit card companies require just your ___________ to secure your funds.

online (or in a billing statement)

Credit card companies send a list of all your transactions ____________ at the end of each payment cycle.

increase

Credit card companies will often ________ annual percentage rates if you cannot prove that you can pay your bills on time. This is an example of a negative incentive.

credit rating (or credit report)

Creditors know that you have an excellent or poor track record of paying back your bills by looking at your ________ __________.

war bonds

During WWI and WWII, Americans were asked to show their patriotism by purchasing _____ ______ which helped the government pay for the wars.

immediately

Debit cards let a merchant know ______________ if the customer has enough funds to pay for a product.

1

Disability insurances usually last no longer than ____ year(s).

choices

Dumbledore in J. K. Rowling's Harry Potter and the Chamber of Secrets reminds us that "it is our ________ that show us who we truly are, far more than our abilities."

costs (Step 7. Financial Planning)

Estimate ________ for goals — How much should you put aside for each goal?

income (Step 5. Financial Planning)

Estimate your ___________ — Do you know what you want to do with your future? Estimate what you will make in that career.

spending (Step 4. Financial Planning)

Evaluate _____________ habits — Use the budget to see how you spend money and make changes when necessary.

before

Evaluate the terms ________ you sign any contracts - interest rates may be quite high on personal loans, especially those from quick-cash places.

20

Even with Medicare, almost ____% of retiree income is spent on health care.

reevaluate

Every time a life event changes your circumstances, you need to __________ your risks, needs, and coverage of your insurance policies.

W-2

Every year, before January 31, your employer is required to send you a ____-___ form; this form gives information that you need to complete tax returns.

wants

Everything that goes beyond needs—a big house, name-brand products, fancy foods— are _________. / what you would like to have

self-sufficiency

Excessive debt does not contribute to which of the following? - self-sufficiency - possible bankruptcy - increased health and stress - family instability

long-term care

Family history of cancer, Alzheimer's, heart disease, and diabetes are probably signs that you should consider _____-_____ ______ insurance.

financial institution (but may be part of an employer plan)

For IRA plans, contributions are usually set up with a __________ _____________. Traditional IRA investments are tax deferred, meaning that taxes aren't taken out until money is withdrawn.

don't

For a 401(k), your contribution is taken out of your paycheck before taxes - you ______ pay taxes on the money until you make withdrawals.

rates

For personal loans, start at your financial institution, but don't hesitate to check _______ at other institutions and evaluate the offers.

negative

Getting your phone taken away if you do not mow the lawn is an example of a ____________ incentive.

all of the above

Good money management is important for which of the following reasons? - learning how to make wise financial decisions - understanding that loans cost more than the amount borrowed - being able to invest in a savings account - all of the above

high (there is much more uncertainty about the success of these investments, but if they are successful, there is a great deal of profit involved)

Growth Funds and Penny Stocks are _____-risk investments.

stable (there is a higher risk involved)

Growth mutual funds involve start-up or newer companies and are less ________, but they have the possibility of making more money in the long run.

increase

Having accidents, being at fault, and getting speeding tickets are all going to _________ your car insurance premium.

car insurance (make sure you have adequate coverage to protect yourself and others from accidents)

Having at least minimal ____ _________ liability coverage is the law in most states, so that if you cause an accident the person you run into will be protected from risk of driving.

financial

Health care programs such as Obama Care are examples of __________ solutions to societal problems.

social

Health care, housing, and energy use are are _________ influences to financial behavior.

all of the above

Healthcare costs, inflationary rates, and housing are all things you should consider when planning for which event? - retirement - at what age you should stop working - when you no longer have income from your employment - all of the above

retirement

Healthcare costs, inflationary rates, and housing are all things you should consider when planning for which situation? - retirement - disability insurance - a long hospital stay - life insurance

high

High-Yield Bonds are _____-risk investments because the company may or may not make a profit.

decrease

Homeowners can _________ their insurance premiums by purchasing alarm systems, lowering their deductibles, and improving deadbolt locks or sprinkler systems.

increase

Homes usually _________ in value because of inflation.

350,000

How many people filed for chapter 13 bankruptcy in 2009?

debit

If a _______ card is lost or stolen, you can call your financial institution and make sure they stop payment on all transactions made with that card. The person who stole the card must also have access to your pin number to use the card.

all of the above

If a company does not care about your credit rating to determine if you are likely going to pay back their loan, which of the following is true? - they want to loan you the money so they can just earn money on the interest. - it will likely charge a much higher interest rate so they can make more money - if a consumer with a bad credit rating can purchase something, the company is probably taking advantage of their situation - all of the above

no (only invest in companies with economic growth)

If a company does not have financial or economic growth, are you going to make money from your investments in that company?

red

If a company is in debt, it is in the _______.

black

If a company is making more money than it spends, it is in the ________ .

50

If an employer has more than _____ employees, they are required to pay a large portion of your healthcare costs.

5

If by studying a second hour for an exam the score increases from 70 to 75, then the marginal benefit of that additional hour would be ____ points.

lower

If lending institutions know that you are a responsible consumer, they will often offer _________ interest rates. This an an example of a positive incentive.

life

If someone is going to suffer financially when you die, that is a great indication that you need _____ insurance.

lower

If the creditors know you are going to repay the debt, AKA you have a high credit rating, your interest rate will be significantly _________.

don't (every time your score gets checked, the inquiry could result in a lower FICO credit score)

If the lender doesn't list a required credit score for a particular rate, ______ submit a formal loan application to check your rates.

bull (good)

If the majority of stocks in the market are rising, it is considered a _____ market.

bear (bad)

If the majority of stocks in the market show a decrease on a particular day, it is considered to be a bad day or a _______ market.

13

If the prime rate is 8% and a credit card's variable rate is 5%, your credit card APR will be ____%.

higher

If you are a bad driver, your car insurance rates will be ________ than the rates for good drivers. This is an example of a negative incentive.

increase (this will lower your costs)

If you are a very safe driver, you should _________ your deductible, the amount of the repair or damage that you have to pay before the insurance company will help.

compensated (worker's compensation)

If you are injured on the job, the government requires that you be _____________ until you can return to your work.

more (the loan would cost you $1,000 + $516 for interest by the time you pay off the loan, in fifty months)

If you borrowed $1000 from your credit union at a compounded interest rate of 20%, you would pay ________ than you would pay for a simple interest loan of the same amount.

higher

If you cannot qualify to get enough money to consolidate all your debt, focus on paying off your _________ rate loans or balances first.

late fee

If you do not pay your bills on time, the company will charge a _____ _____. This is an example of a negative incentive.

online

If you do not want to write a check, you can use ___________ checking, which allows you to pay your bills directly to your creditors.

collateral

If you don't pay off a secured loan, you can lose the ___________ that you set.

1099

If you earn any interest from savings accounts, your bank or credit union will send you a _______ statement telling you how much interest you must submit on your tax form.

plan

If you fail to _______, you plan to fail.

short (or long)

If you have ______-term goals, then you need ______-term investments.

15

If you have a credit card with an interest rate that exceeds ____%, consider getting rid of that card and utilize other payment tools.

rating

If you have a good credit score, you will have a good credit _______.

hold (this stops any transactions from your account)

If you lose your checkbook, put a ______ on your bank account.

early

If you pay extra towards a principal amount and pay off your loan ________, sometimes you can incur hidden fees from the lending institution.

c. ($300,000)

If you start saving $100 a month starting at age twenty-five, how much money could you have when you retire at sixty? - A little over... a. $100,000 b. $200,000 c. $300,000 d. $400,000

victim

If you think you may be a _______ of identity theft, immediately contact the FTC, a major credit bureau (to inform them of the situation), your local police station, and any businesses where fraudulently conducted transactions occurred in your name.

growth (if a company cannot sustain its growth, you will lose money just about as quickly as you made it)

If you want a get-rich-quick stock, _________ stocks will be more likely to make that happen.

overdraft

If your checking account is an ____________ account, the bank will honor transactions that are larger than the amount in your account. They will charge a bill, called an ___________ bill, for completing the transaction that can range from $25-$40.

salary deduction

If your contributions are made by _______ __________, saving is easier and may seem almost painless.

one

If your credit limit is high enough and you cannot qualify for a consolidation loan, putting your debt on _____ card(s) might be your answer.

inflationary (or 3%)

If your salary does not increase at an __________ rate, then you are making less money than you did the year before.

refund (conversely, if you have underpaid, you will owe more money)

If, by filing tax forms, it is determined that you have overpaid the amount of taxes that you owe, you will receive a _________ from the federal or state government.

Social Security

In 1935, Congress tried to alleviate poverty in the Great Depression by passing the ________ __________ Act. These taxes are withheld to make it possible for retirees to have funds available when they stop working.

78 (increasing the burden of social security on the government)

In 1935, people usually did not live to be over the age of 61. By 2012, life expectancy was around _____ years old.

Consumer Credit

In 1968, Congress passed the ____________ ________ Protection Act, which is designed to protect consumers from fraudulent credit companies.

60%

In 2013, 10% of retail sales were done on the Internet. What is the percentage that experts have predicted will be reached for retail sales in 2017? - 75% - 60% - 25% - 30%

4

In 2014, the annual interest rate was _____%.

made/ paid

In a W-2 form, the most important information is how much money you ______ (line 1) and how much money you ______ to the federal government (line 2).

need

In all actuality, you only _______ four things to survive: A roof over your head, enough food and water to maintain your health, basic health care and hygiene products, and basic clothing./ what you cannot live without

benefits packages

In competitive jobs, employers will negotiate __________ ____________ to entice workers to join their organization.

housing subsidy

In markets where cost of living is high, it is not unusual for companies to offer a _________ ________ to help employees pay for rent or home mortgages.

automobile

In most states, it is illegal not to carry which type of insurance? - life - automobile - renters - flood

18

In the 1980s, the annual interest rate was about _____%.

6

In the 1990s, the annual interest rate was ____%.

all of the above

In which situation does it make sense to purchase dental insurance for your children? - you had several cavities each time you went to the dentist as a child - you had braces. - your wisdom teeth were impacted. - all of the above

low

Income Mutual Funds are ____-risk investments because of the diversification of stocks and the validity of the companies involved.

steady (these are a better choice for people with less financial flexibility, such as retired individuals)

Income mutual funds involve companies who have been in business for a long time/ are more stable, and they can provide a ________ stream of income.

stocks (and bonds)

Inflation has the most severe negative effect on ________.

3

Inflation usually increases approximately ___% a year.

(calculated) risk

Insurance companies base their rates on ______.

balance

Interest-bearing checking accounts offer interest rates based on the ___________ in the account.

growth

Investors just starting out in the market who are young and who have a lot of years of working and making money ahead of them, should invest in __________ funds.

minor (but companies do it all the time)

It is actually illegal for a credit card company to sell a credit card to a ______.

once

It is critical that you order your credit report at least _______ a year to see if you have any problems with your credit, so you can resolve any issues. - request a report at www.annualcreditreport.com or call 877-322-8228

attainable

It is especially important to set goals that are ______________ without exceeding your income and that stay within your budget.

easier

It is simply __________ to carry a debit card than it is to carry a checkbook.

6 (you want some of your savings to be in investment areas where you have constant and easy access)

It is strongly suggested that each household have enough liquidity in their personal finances to be able to live for ____ months on their savings before they have to sell their assets to make ends meet.

home (or future home)

It is very likely that your _______ will be your biggest investment.

joint stock

Jamestown, America's first successful English colony, was started as a ______ ______ company in 1607.

liquidity

Jill finds out that her daughter, Susan, borrowed money from a friend to purchase a pair of boots. Jill is upset and tells her daughter to pay back the friend right away. Susan goes to her bank and withdraws money from her savings account and immediately pays back the friend. - This scenario is an example of ___________.

records (Step 2. Financial Planning)

Keep ___________ — Create a filing system related to your entire financial life.

all of the above

Keeping a good budget and saving money is a good example of which of the following? - investing in your future - wise ways to spend money - good financial planning - all of the above

bank

Larger loans are more feasible from a _______, because they have more money to use.

APR

Late fees will not only incur a penalty fee, but the credit card company may also increase your ______.

spending

Learn to control your ____________ - do not spend more money than you earn and learn the differences between needs and wants. Delay gratification until you have the money to make a purchase.

worthiness

Lenders rely on your credit history to make decisions regarding your applications for jobs, housing, large purchases, etc. and credit __________.

25

Less than ____% of Americans could pay their bills for six months if they lost their jobs tomorrow.

less

Life insurance when you are twenty costs significantly _____ than if you start a policy later.

interest (the funds are in the bank)

Like cash, paying with checks does not accrue ___________.

APR (annual percentage rate)

Loan agencies charge an ______, or interest rate, to lend out their money. This fee is charged annually as one borrows the money.

low

Long-Term Investments are ____-risk investments. The longer you are able to leave your money in an investment, usually the more you earn on that investment.

credit card

Look for hidden fees, service fees, and any other small print that is included with the _______ _______ you are applying for.

low

Low-Yield Bonds are _____-risk investments because you eventually get your money back.

lower

Maintaining a good credit report can ________ your insurance premiums.

plan

Make a ________ - know where your money is going and create a budget that will facilitate a rainy day fund, college fund, or retirement fund.

below (always consider whether it would be wiser not to involve the insurance company)

Making an insurance claim will usually increase your premium costs if the amount of damage is ____________ your deductible. ex. if your deductible is $1,000 and the damage is only $500, you would not want to involve your insurance company

investment

Many companies also offer ___________ options - The 401(k) or 403(b) plans are savings account plans your employer may offer.

500

Many credit card companies don't charge a yearly fee, but some will charge over $______ to use their credit cards each year.

20

Many merchants do not want to accept traveler's checks or cash over $______.

checks

Many vendors do not accept _______ because people can use them dishonestly.

85

Medicare, private insurance, and/or Medicaid pay for only about ____% of retirees' overall health care expenses.

interest

Money added on to what you initially borrow, or the principal, is called the ____________.

withdrawn

Money can be deposited into 401(k) or 403(b) savings accounts pre-taxed and cannot be charged a tax until the money is __________.

half (they have accumulated more debt than they can pay; and they have to pay interest on their debt)

More than ______ of all American households spend more money than they make.

Transaction Description

On a check register, _____________ _____________ is what you spend the money on. There are two lines to calculate each transaction - the first line for who you write the check to and the darker line for an explanation of why you wrote a check.

low

On an investment, if the liquidity is high, the risk is usually _______.

high

On an investment, if the liquidity is low, the risk is usually _______.

low/ high

On the stock market, you should buy when the cost of the stock is _____, and sell when the price of the stock is ______.

flood

One of the biggest problems with Hurricane Katrina was not that people did not have homeowners insurance—it was because half of the people did not have ______ insurance.

empowered (they needed money before they had decided what they were interested in)

One of the biggest reasons that people are unhappy in the workplace is because they did not feel ___________ when making their career choice.

interest (probably the simple interest rate)

One of your most important financial tools to learn is to shop _____________ rates. What rate is going to cost you the least amount to borrow money for a certain period of time? If you have a 10% simple interest rate vs a 3% compounded interest rate, which is going to cost you the most money over a 5 year-period?

cookies

Online merchants/ other sites watch our shopping and surfing habits by using __________, a tracking system that attaches pieces of code to your Internet browser and tracks which sites you visit.

one

Only _____ in ten companies usually make money.

Treasury

Only the U.S. Department of the ___________ can redeem a savings bond.

1950

Origin of the credit card - One evening in the _______s, a New York businessman, Frank McNamara, was mortified when he realized he had invited friends to dine out and he had left his wallet at home. He wanted to give the restaurant some sort of guarantee that even though he could not pay his bill at that time he would pay his bill in the future. A few months later, he returned and purchased his meal with a cardboard credit card, the Diner's Club Card.

equals

Our decision rule is to go up to the point where the marginal benefit ________ the marginal cost since there is no other place that would be better.

20

The interest rates on overdrafts are usually much higher than normal, at approximately _____%.

cultural

Paying your mortgage late and having it be unacceptable and looked down upon is an example of a ___________ influence.

federal government

Payroll and income taxes are withheld from employees' pay by their employers; employers send withheld taxes to the __________ ____________.

30

People in the 18 to 24 age bracket spend nearly ____% of their monthly income just on debt repayment.

risk management

Potential impact, prevention plan, contingency plan, and risk are all things to consider for which type of plan? - a _______ _____________ plan

emergencies

Quick and Payday loan agencies should only be limited to short-term _____________ and only if you have exhausted all the other types of financial institutions.

liquidation

Rachel's car is totaled. Although her car insurance company gives her money for the car, she needs another $4,000 to purchase a new car. She withdraws $4,000 from her savings account to do so. This is an example of ________. - certification - liquidation - valuation - diversification

1,050

Sarah's gross pay is $5,000. She had $1,400 taken out of that amount; $1,050 is in taxes and $350 is for savings and retirement funds. Which number corresponds to the amount for deductions? - $_________

Roth IRAs

Savers who are in a lower income bracket often prefer ______ _______ because they have taxes taken out at the time of contribution and are tax free at the time of withdrawal.

circumstances

Savings and investments are dependent on life's _______________. - If you are young, you might choose a more aggressive savings plan. If you are getting ready to retire, you might choose a more conservative approach to saving and investing.

goals (Step 1. Financial Planning)

Set _______ — Consider what you want out of your life.

time frames (Step 6. Financial Planning)

Set ________ __________ for goals — Short term = 1 to 2 years Medium term = 3 to 10 years Long term = 10 years or more

supersedes (to take the place of )

Setting and attaining goals often ____________ spending your money on impulsive purchases.

impulse

Setting goals helps to minimize ____________ buying.

high

Short-Term Investments are _____-risk investments. These investments usually last just a year or two to increase in value.

FICA

Social Security and Medicare are called _______ taxes, after the name of the law that created them.

cultural

Some ___________ influences that affect our financial behavior include family values, concept of time, and language. ex. Would it be acceptable for you to be a half hour late for a loan application meeting in your culture?

social

Some ___________ influences that affect our financial behavior include peer pressure, "keeping up with the Joneses," and conformity.

emotional

Some ___________ influences that affect our financial behavior include shopping selections, wants vs. needs, and colors.

limit

Some checking accounts _______ the amount of checks you can write out each month.

penny

Stocks that have a high risk of losing money because the companies are brand new are called ________ stocks.

false (unless they have medical results to backup that claim)

T/F - A company can advertise a product that can cure cancer.

true

T/F - A lender is trying to make money from you by having you borrow their money.

true (stepping back/ reexamining your budget should help you avoid unplanned expenses)

T/F - Advertisers try to get an emotional response from you so that you will buy their products.

true

T/F - Although you can make money flipping homes, this type of investment has a very high risk.

true

T/F - As odd as it sounds, a budget, while seemingly strict and confining, gives you financial room to move.

true (ex. a company makes faulty products quickly for short-term increase in money, but loses money on lawsuits in the long-run)

T/F - Both the short and long term should be considered when making a choice.

true

T/F - Career planning is just as important as financial planning.

true (this reflects badly on you)

T/F - Chapter 7 bankruptcy will be recorded on your credit report for the next ten years.

false (creditors should be aware of your ability to pay before they loan you their money)

T/F - Creditors knowingly let you spend more money than you can pay back.

true (for this reason, it is better to use a credit card when shopping online)

T/F - Debit and ATM cards are not protected by federal law to the extent that credit cards are.

true (having good grades signals to insurance companies that you are a good driver)

T/F - Good grades usually lower your car insurance premium.

true

T/F - Hard asset collections and real estate investments usually can withstand inflation attacks.

false (the patients that have insurance have to pay higher costs for those that are not insured)

T/F - Hospitals can deny treatment to uninsured patients.

true (most companies offer a grace period of around 20 -30 days)

T/F - If a credit card does not offer a grace period or if that period is less than 20 days, you may want to reevaluate whether you want the card.

true (see example from text)

T/F - If you cannot qualify for a consolidation loan, you can make yourself a debt elimination plan.

true (there are types of insurance for nearly everything of value out there - how valuable are your things to you?)

T/F - If you have calculated the risk and think that the benefits outweigh the costs, then purchase that insurance.

true (income is any money you earn from work, investments, business, etc.)

T/F - If you win the lottery, that money would be a part of your income.

true

T/F - If your credit score is poor, the interest rates on personal loans can be even higher than those on credit cards.

true (it is required by the federal government and most state governments)

T/F - In the United States, employers must withhold tax on wages.

false (they involve stable companies that are well established and secure)

T/F - Income mutual funds involve stable penny stocks for businesses that have just opened.

constantly review and revise them (in order to make them a reality)

The best reason for writing down your goals is so that you can... - see what your goals are in order to help you - constantly review and revise them - have enough money for retirement - make sure to keep them the way they are and never change them

cash

The best scenario would be to save enough money to be able to pay _______ for everything you purchase, that way you won't accrue any interest on that debt.

start making money

The best time to start budgeting your money is when you... - start making money - graduated from college - start saving for retirement - make $5,000 a year

short (the faster you pay off the loan, the less interest you will have to pay)

The best type of student loans are ______-term.

debt

The biggest financial problem facing Americans today is consumer _____.

credit

The cost of ________ is determined by the amount of the loan, service fees charged by the lender, an annual percentage rate, the length of time you are going to use a creditor's money, and the amount you are able to pay each month towards that loan.

risk (an established company's stocks will obviously cost more money than a company just starting out)

The cost of a stock has a direct correlation on the amount of _____ the investor is taking.

budget

The easiest way to avoid debt is to stick to your _________.

decision

The financial planning model is helpful when making a financial ___________.

list

The first step in creating a workable budget is making a ______ of what you spend your money on.

credit score (rating)

The five biggest factors that affect your ________ _________are your payment history, the amount you owe, the length of your credit history, new credit/ the number of new accounts you have, and the types of credit in use.

quickly

The goal of debt consolidation is to get you out of debt as __________ as possible.

FTC (Federal Trade Commission)

The government agency that regulates truthfulness in advertising is the _______.

National Defense (25%)

The highest percentage of American Tax Money is spent on __________ __________.

balances

The key to avoiding credit card ___________ is being able to pay it in full each month.

balance (the amount of money you still owe on a card or loan)

The more you can pay on the __________ each month, the less you will pay in monthly interest payments.

month

The prime rate changes every _______. - if the economy recesses, the prime rate could rise drastically

debt (easier said than done - if people are not buying, a financial recession is likely to occur)

The simplest way to avoid bankruptcy is to not accrue ________.

credit score

The simplest way to save money without realizing it is earning and maintaining a high _______ ________.

20,000

The standard deduction for married couples is $___________.

10,000

The standard deduction for single individuals is $___________. If you made less than this, the government does not require you to pay taxes.

tech savvy

This is one of the top five skills needed in the workplace. - Computers and technology are everywhere in the workplace. Employers expect their employees to be ________ _______.

income

There are 7 states that do not require individuals to pay state __________ taxes because the state makes adequate revenue from other sources. - Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming

5 (Alaska, Delaware, Montana, New Hampshire, and Oregon)

There are ___ states that do not charge sales tax.

(typically minimal) costs

There are ________ associated with purchasing a money order, so make sure you're aware of that before utilizing this payment tool.

defined contribution

There are two basic employee contribution plans - Investments in _________ ____________ plans are controlled by the employee, who contributes some or all of the funds and decides how to invest the money. The most common of these are 401(k) and IRAs.

defined benefit

There are two basic employee contribution plans - The investments in _________ ________ plans are controlled by the employer or administrator. These are traditional pension plans.

50

There is a ____% tax penalty on amounts that the IRS requires to be taken out after age 70 ½ and that are not withdrawn when required.

income

There is a direct correlation between your ________ and the spending limit you will be given by the loan institution.

experiences

This is a factor that will influence your future income. - Considering past positive ____________ will help you focus on career areas that are likely to bring more success.

abilities (and skills)

This is a factor that will influence your future income. - Considering your ________ will help you identify which ones fit a specific career.

personality type (and interests)

This is a factor that will influence your future income. - Various assessments are available to help you identify your ___________ _______. Ex. the Holland Codes assessment lists career choices based on this.

life roles

This is a factor that will influence your future income. - Your _____ ______ may include child, student, worker, and/or parent, and may influence your career decisions.

social (and economic)

This is a factor that will influence your future income. - Your career choices will be affected by changes in _________ conditions. Changes in the job market may also affect your career opportunities.

Culture

This is a factor that will influence your future income. - ________ often influences our values and expectations. Be aware of its effect on your career choices.

Gender

This is a factor that will influence your future income. - _________ bias does not stop us from selecting the career of our choice as it once did, but there are still career-related stereotypes that could be obstacles to overcome in the workplace.

(verbal and written) communication

This is one of the top five skills needed in the workplace. - Effective ____________ skills are high on the list for most employers. Being able to listen well and present ideas to people within all levels of the company or to clients is a key component to being successful in the workplace

team players

This is one of the top five skills needed in the workplace. - Employers prefer to hire people who are ______ ________ and work well with others. When you have the ability to relate to and inspire others, you have a greater chance of advancing your career.

adapt (adaptability)

This is one of the top five skills needed in the workplace. - Your ability to be flexible and ________ to situations that arise makes you a valuable employee. The capability to tackle multiple projects and tasks, set priorities and to accept modifications to assigned work leads to a successful career.

Analytical (, research, and logic)

This is one of the top five skills needed in the workplace. - _________ skills also top the list of skills employers want in job candidates. These kinds of talents determine your ability to evaluate a situation, investigate the facts, or seek input and information from other sources as well as identify the issues that require attention.

envelope method

This method involves cashing your checks and dividing them into various labeled envelopes, such as transportation, savings, food, bills, etc. Once the envelopes are empty (aside from savings), all spending is halted.

simple

Though most loan agencies will not consider a ___________ interest loan, you might have a relative or friend who will give you one. ex. You borrowed $1000 from your grandfather at a simple rate of 20%. You pay $20 a month for fifty months. The loan costs you $1000 + $200 for interest.

monitor

To ___________ your spending, use a piece of paper and write down everything you spend money on.

weight (in ounces)

To determine how much something costs per ounce, divide the cost by the _________.

FICO

To make your credit history more readily available and universal to creditors, in 1956 a company called Fair Isaac Corporation devised a way to translate our credit history into a number system that will give merchants a way to know your credit worthiness almost instantaneously. It is called the ________ score or credit score.

increases

Today, companies sell stocks (shares) of their companies to investors. - If that company makes money, the price of those shares __________.

do not

Today, companies sell stocks (shares) of their companies to investors. - If the company does not make money, the shareholders (investors) ____ _______ see a positive return on their investment.

schools (roads, snow removal, and so on)

What is the purpose for imposing property taxes? The money is used to pay for... - schools, roads, snow removal, and so on - fund housing projects - checks for low-income households - longer possession of property

fraudulent

What is the purpose of the Consumer Credit Protection Act? - protecting consumers from ___________ credit companies

all of the above

What is the reason that the change in the average life expectancy is significant for Social Security taxes? - because the government has enacted FICA, it insures that people will get payments when they retire. - because people are living longer and more people are retiring, the government must pay out more money - because the average life expectancy has changed, the government may not be able to keep up with retirement payments - all of the above

interest

What purpose does the Federal Reserve have in our economy? - It determines the annual ___________ rate for our country.

all of the above

What type of information is offered by the YourFreeCareerTest quiz? - various career-related tasks - level of interest in specific tasks - possible careers related to tasks - all of the above

debt

What was the main reason for the stock market crash in the 1920s? - Americans had accumulated too much ________.

all of the above

When considering whether to invest in a particular company, what is something you should ask? - Does the company have a solid earnings history? - What are the company's competitors? - Who runs the company? - all of the above

increase

When inflation increases, interest rates on your credit cards, adjustable-rate mortgages, or car loans usually ___________.

low

When inflation threatens your investments, usually ____-risk investment strategies should be employed.

higher (spending helps the economy)

When interest rates are __________, you are not able to spend as much.

have enough income (to pay back debts)

When is the best time to apply for a credit card? When you(r)... - parents can make your payments - have enough income to pay back debts - are eighteen years old - need the money

young

When is the best time to start learning about money management? When you are... - young - in high school - earning money - in college

PACED

When making financial decisions, use the __________decision-making model. P- problem (What decision are you making?) A- alternatives (What options are available?) C- criteria (What goals do you hope to accomplish? Which criteria are more important than others? ) E- evaluate (Give each alternative a plus + or a minus - according to how well it meets each criterion) D- decision (Calculate the net value of each alternative and make a decision)

secure (look for https: or a closed padlock icon)

When shopping online, be sure to use a _________ website.

credit (credit card charges can be disputed)

When shopping online, it is better to use a ______ card than a debit card.

checks

When using ________, you must be very diligent in keeping accurate records, similar to cash.

debit card

When using a _______ ______, money is taken directly out of your checking account, and no interest will accrue.

decimal

When you multiply by percentages, you need to make sure the ____________ point is in the right place. - ex. 1.5% = 0.015

loan

When you take out a _______, you begin to build a credit rating/ score.

schedule (ex. monthly payments)

When you take out a loan, your financial institution will set up a payment _____________.

debit

When you use a ________ card, the money is deducted directly from your checking account.

(the) Federal Reserve

Which body of government organizations determines the annual interest rate for our country?

Fair Isaac Corporation

Which company developed a way to translate a person's credit history into a number system resulting in a credit score? - National Credit Society - Fair Isaac Corporation - Bureau Division - Federal Money Division

all of the above

Which description applies to "debt consolidation"? A debt assistance plan that... - allows you to pay off loans more quickly - combines multiple debts, loans, or payments - usually lowers your interest - all of the above

all of the above

Which factor should you consider when thinking of purchasing a house? - the amount of your monthly mortgage payment - the cost of the utilities - the cost of the furniture - all of the above

all of the above

Which form is necessary to either you or your employer in preparing your taxes? - W-4 - W-2 - 1040 or 1040EZ - all of the above

all of the above

Which insurance coverage is important? - automobile - life - disability - all of the above

stocks

Which investment is LEAST likely to withstand the effects of inflation? - stocks - money market funds - hard asset collections - all of the above

stocks

Which investment is most affected by inflation? - stocks - money market funds - hard asset collections - none of the above

conservative

Which is the main reason some people choose to file a chapter 13 bankruptcy? - It is a more ______________ approach to bankruptcy.

progressive tax

Which method is currently used in America to calculate federal taxes? - regressive tax - progressive tax - proportional tax

(making) charitable contributions

Which method is not intended to help you know whether you are keeping good track of your credit? - paying your bills on time - completing loan applications accurately - avoiding bankruptcy - making charitable contributions

knowledge about how to handle finances

Which of the following best describes sound financial literacy? - knowledge about how to handle finances - learning how to maximize debt - keeping track of all income - constant worry about your financial future

c. (all of the above)

Which of the following describes a type of defined contribution plan? a. employers sometimes match the amount the employee pays in b. the employee contributes some or all of the funds and decides how to invest the money c. all of the above

all of the above

Which of the following financial groups is subject to financial consequences? - those with a high amount of debt - those who are unaware of how interest works - those who haven't learn about money - all of the above

all of the above (quick loans should be reserved for extreme emergencies only)

Which of the following is a good reason for avoiding quick loans? - higher fees - higher interest rates - difficulty paying back - all of the above

paying the minimum due on credit cards

Which of the following is not a key component of financial literacy? - establishing a budget - examining your income and expenses - paying the minimum due on credit cards - setting goals

being knowledgeable about credit and debt

Which of the following is the best key component of financial literacy? - knowing how much interest is charged on loans - having the financial freedom to buy what you want, when you want it - being knowledgeable about credit and debt - trying to earn more money to alleviate financial concerns

differentiating between needs and wants

Which of the following is the best way to limit spending? - differentiating between needs and wants - setting goals that define your wants - spending money only once a week

all of the above

Which of the following is true about a budget? - it will allow you to purchase important things - it allows you to save for future goals. - it helps you avoid debt. - all of the above

debit cards

Which of the following payment tools do the majority of merchants prefer? - debit cards - checks - travelers' checks - none of the above

debit card

Which of the following payment tools is the most accepted but does not require any interest payments? - debit card - checking account - loan - credit card

all of the above

Which of these are considered to be wise investment choices? - mutual funds - hard assets - stocks and bonds - all of the above

furniture (for a new home)

Which option is NOT an example of "good debt"? - student loans to pay for a college education - mortgages to buy a home - furniture for a new home - auto loans, particularly if the vehicle is essential to doing business

continue using credit cards

Which option is NOT the best way to repair your damaged credit? - pay off credit cards/loans ASAP - use cash for all purchases - continue using credit cards - stop using credit cards

all of the above

Which option is a good way to protect your identity? - request a copy of your credit report at least once a year - never write your PIN on any of your credit or debit cards - shred all important documents - all of the above

(emergency) savings account

Which option is not a common defined contribution plan? - 401(k) retirement fund - IRA retirement fund - emergency savings account - all of the above

savings bonds

Which option is not a high-risk investment? - savings bonds - real estate - stock in a startup company - growth funds

all of the above

Which option is something you should consider when shopping for a loan? - the interest rate - the type of loan - where you are going to get the loan - all of the above

the ALS ice bucket challenge

Which option is the best example of a value incentive? - purchasing something and then getting a rebate - being able to test drive a new car - the ALS ice bucket challenge - sale prices at the supermarket

all of the above

Which option should consumers consider when they are offered credit when they did not ask for it ex. mail offers? - is there a variable rate - are there hidden fees, service fees, and small print - is the company credible and reputable - all of the above

all of the above

Which sales taxes are you probably paying when you purchase gasoline? - federal taxes - state taxes - local taxes - all of the above

federal income tax (this is required no matter your state of residence)

Which statement is not true? - Some states in the country do not impose... - sales tax - federal income tax - state income tax

proportional (flat) tax

Which term best matches this definition: "each individual or household pays a fixed percentage"? - proportional (flat) tax - regressive tax - progressive tax - none of the above

regressive tax

Which term best matches this definition: "everyone, regardless of income level, pays the same dollar amount"? - proportional (or flat) tax - regressive tax - progressive tax - none of the above

401(k) fund

Which type of fund falls into the category of a defined contribution plan? - emergency savings fund - insurance fund - 401(k) fund - pension fund

all of the above

Why do consumers have to be careful about credit card purchases? - overspending - high interest rates - service fees charged - all of the above

retired

Why was the FICA law enacted? - to create a fund for employees' Social Security taxes that the employee will get back once ________

benefit

Wise consumers always try to compare the value of their cost to the value of their ________.

patient (you're in charge of your spending and can't be manipulated into impulse buying)

Wise financial decision makers are ________. Take your time, sleep on your decisions.

priorities

Wise financial decision makers know their ___________. They put needs first and pay off their debt before they buy something new

calculated (take risks in support of your goals)

Wise financial decision makers take __________ risks.

disciplined (set a budget and stick to it)

Wise people are ___________ and exercise self-control when it comes to their spending.

squander

Wise people don't ___________ money. They save or invest some of their money to help achieve long-term financial goals.

means

Wise people live within their _________, paying their bills on time and only buying things they can afford. They don't feel pressured to spend money on items they don't need.

regressive

With a ____________ tax, the government charges the same amount of tax from each taxpayer, irrespective of income.

more

With the increased obesity epidemic in the United States, health insurance companies are going to charge you _______ if you don't exercise or eat right. This is an example of a negative incentive.

1040EZ

With the information from your W-2, you will be able to fill out a basic __________ tax form.

maximum

Without exception, retirement planners advise contributing the ___________ to your retirement plan, especially if your employer contributes too.

penalties

You can be charged stiff __________ if you don't have the funds in your bank to pay for a check.

mature (if you redeem your savings bond after the maturity date, you still only get the value of the bond as of the date it matured)

You can redeem savings bonds any time you want to, but if you wait for several years until they become _________, their value will be much higher than if you had cashed them in earlier.

combine

You can usually _________ your homeowner's and car insurance policies with the same company for discounts.

spouse

You cannot even die without having to pay taxes, unless you give all your money to a _________ or to a tax-exempt charitable organization.

lowest (the lower the interest rate, the sooner you can pay off that loan and the less money you will have to spend)

You need to shop for the ________ interest rate.

slows

You should care if others are filing for bankruptcy because it _________ the economy.

1/3

You should never pay more than ____ of your net salary to pay for a home.

3 (or 4)

You should utilize at least _____ different investment options to protect your investments. A variety of ultraconservative, conservative, and moderate investments is probably the best option.

freedom

You want to establish and maintain a high credit rating because that rating will give you much more financial _________ to make future purchases on cars, homes, etc.

health

You will save thousands of dollars on insurance over your lifetime if you start now to maintain your ________.

credit report

Your _______ ________ will list all of your debts.

goals

Your financial decisions should be based on your _________.

disclosure info

Your lending institution should supply you will all the ___________ ______ about a loan so that you can make an informed decision before signing a contract. This helps you evaluate the risks and rewards of a contract.

6.2

____% of your earnings go towards paying your Social Security tax.

78

_____% of football players in the National Football League declaring bankruptcy just five short years after retiring.

Full-service

_____-________ brokers, like Edward Jones, Morgan-Stanley, Charles Schwab, and Merrill Lynch, provide a wide variety of services, such as research and advice, assessing retirement plans, and providing tax tips. They cost a large sum, however, they are usually up to date on the latest trends and technological advancements.

Tax-deferred

_____-___________ investments are government programs that allow you to invest before your income is taxed. You put a set amount into the accounts each month and have it earn interest.

CDs (certificates of deposit)

______ accounts are even better than money market accounts and usually yield even higher interest rates on your savings account. This type of account does not allow early withdrawals without incurring penalties. The longer your money is in, the higher the interest rates are that you will earn.

22.5

______% of the government's revenue is being spent on healthcare for the elderly and those who don't have insurance.

Ultra-conservative

______-____________ investment strategies involve investments with very low risk attached to them. They yield modest returns, but they are safe and you will have constant access to these funds.

Free

_______ annual credit reports are required by the Fair Credit Reporting Act (FCRA).

MMA (money market accounts)

_______ were devised to offer incentives for people to save. This type of account will earn you more interest than a traditional savings account, but there is greater risk due to investing in stocks. Withdrawals are allowed from this type of account.

short

_______-term goals can be accomplished in less than two years.

mid

_______-term goals can be accomplished in two to five years.

long

_______-term goals will probably take concerted saving efforts and more than five years to accomplish.

Good debt

________ _______ is an investment that will grow in value or generate long-term income. ex. student loans, mortgage, etc.

Quick loan

________ _________ companies will be happy to loan you their money, but they are almost guaranteed to have extremely high service fees/ higher interest rates.

Holland

________ codes are widely used to connect personality types with career fields available.

Credit (the average American household has spent $15,000 with their credit cards)

_________ cards are the number one reason households are spending more money than they earn each year.

Credit

_________ cards enable consumers to buy goods and services without immediately paying for them.

Loans (due to interest)

_________ cost more money than the amount actually borrowed.

Late

_________ fees will incur penalties and will reflect negatively on your credit report and credit score.

Scarcity

_________ is the reason why we must make decisions - we have unlimited needs and wants but limited time and money.

Installment closed-end (AKA non-revolving)

__________ ______-_____ credit is used for a defined time period and amount along with an interest payment. Repayments on this type of consumer credit are usually made in equal installments. Companies usually retain the title of goods and services until full payment is made. ex. Mortgage loans, business loans, and car loans

Revolving open-end (the type of credit that will cause most of your difficulty)

__________ ______-_____ credit is usually associated with credit cards. With this, the consumer is given a certain amount of credit that they can use to purchase goods and services. The only way to stop this revolving is either getting rid of the card or having it taken away.

Google

__________ has been selected by Fortune Magazine as the best place in the world to work for the last four years.

Obesity

__________ has the potential to bankrupt the medical community in the United States as a result of the additional medical costs it carries.

Simple

__________ interest is a one time fee.

Inflation

__________ is a major factor in determining how much money you will need in retirement since, to cover it's impact, you will need more money every year.

Patience (if you can afford to wait until the market rebounds, the value of the home will probably eventually return or raise higher than the initial cost)

__________ is the key to investing in homes.

Interest-bearing

__________-___________ checking accounts tell you that the bank is willing to trust you to balance your account and not go under that specified amount. They will allow you to write an unlimited amount of checks.

Traveler's checks

___________ __________ have become obsolete with the advent of credit cards and ATMs, but they still present a secure method for travel, especially to foreign countries.

Savings

___________ accounts are simply for saving money.

Discount

___________ brokers are individuals who invest your money in the stock market for you. They deal mostly in individual stocks and bonds and don't offer advice/research because their commissions are much smaller.

Online

___________ brokers just buy and sell what you tell them, charging a minimal price for each trade. This investment requires you to do the research and watch trends yourself.

Health

___________ insurance is probably the greatest asset in your benefit package.

Commit (Step 8. Financial Planning)

___________ to a financial plan — If you are serious about achieving these goals, it will require concerted effort on your part.

Medicare

___________ was enacted to to create a savings fund from which employees receive medical insurance when they retire.

Protect

___________ your money - get insurance to cover any unexpected loss.

Consumer debt

____________ _______ is defined as money, goods, or services that are given to an individual instead of having them paying for it. ex. credit cards, store cards, purchasing cards, loans, and mortgages

loan agencies

agencies that were created to provide with specialized loans, such as a mortgage or student loans

identity theft

all types of crime in which someone wrongfully obtains another person's personal data in some way that involves fraud or deception

consumer credit

amount of credit used by individuals to buy products, such as goods and services and is used as an advance which is required to pay for the purchases

variable rate

an APR that is going to change with the health of the economy, usually each month

budget

an amount of money available for spending that is based on a plan for how it will be spent

standard deduction

an amount of money set by the IRS that is not taxed

loan

an amount of money that is given to someone for a period of time with a promise that it will be paid back/ an amount of money that is borrowed

depression

an economic downturn more severe and long-term than a recession

asset

an item that you own and that has value

credit union

an organization that gives small loans to its members at low interest rates and offers other banking services

shareholders

another word for investors

capital

another word for money

assets

anything of value that is owned

banks

establishments for the custody, loan, exchange, or issuance of money for the extension of credit and for facilitating the transmission of funds

voluntary benefits

benefits that are not required but are offered by the employer ex. retirement plans, housing and car allowances, food allowances, and vacation days

mandatory benefits

benefits that your employer must pay because of federal and state laws ex. Social Security, worker's compensation, and often medical benefits

flipping (homes)

buying homes to fix up to resell for a higher price

liquid asset

cash, or items that you can easily convert to cash

credit bureaus

companies tasked with keeping track of your credit/ the three main _______ _________ are Equifax, Experian, and TransUnion

mortgage

credit provided for the purchase of a house