lifepac 1209

NSF

"Non-Sufficient Funds" (for writing a check). if you write a check with this, both merchant and bank can charge you a penalty

Proverbs 21:20

"There is treasure... and oil in the dwelling of the wise; but a foolish man spendeth it up." The writer's telling us that wise men will save rserves

proverbs 3:27-28

"Withhold not good from them to whom it is due, when it is in the power of thine hand to do [it]. Say not unto thy naeighbor, Go, and come again, and to morrow I will give; when thou hast it by thee." (if you can pay the debt, pay it)

credit card

"debt card"

proverbs 12:11

"he that tilleth his land shall be satisfied with bread: but he that followeth vain [persons is] void of understanding." (about diligent workers)

proverbs 3:5-10

"honour the Lord with thy substance, and with the first fruits of all thine increase: so shall thy barns be filled iwht plenty..."

proverbs 13:11

"wealth gotten by vanity shall be diminished; but he that gathereth by labour shall increase." a person who tries to get $ by fraudulent means will not get more, but the steady worker will add to his savings

income

$ received as earnings from work or the selling of goods

annual percentage rate

(APR)a measure of the yearly cost of credit

Percentages per general expense

1. housing+utilities 25-40% 2. taxes 20% 3. transportation+maintenance 10% 4. Food 10% 5. clothing 5% 6. savings 5% or more 7. entertainment 5% 8. debt(credit cards, personal loans, school loans) 5% 9. Other expenses 5% or more 10. tithe 10%

keep yourself from falling into the debt trap

1. locate where you are overspending 2. don't let spending habits get out of hand 3. plan your spending ahead of time 4. don't let finance charges eat up your budget 5. keep track of your spending 6. don't allow room for anyone to abuse your purchase 7. prevent any opportunity for a thief to get away by keeping a list of your your credit card account numbers, checking account info, and pone #s of each credit card issuer

writing a check

1. write the date(if check doesn't get processed, bank will know how long the check has been held up, and you won't be overcharged) 2.write in the name of the payee 3. write in amount of $ in 2 places(to double-check) 4. fill in the memo and sign check

tithe

10% return back to the LORD from income you received; derived from O.T. passages like Deuteronomy 2:11

Budget # 1

A monthly budget is usually best framework to use

Pay bills

ASAP

Proverbs 3:9-10

God should receive honor in our handling of finances. "honour the LORD with thy substance, and with the firstfruits of all thine increase: so shall thy barns be filled with plenty, and they presses shall burst out with new wine."

overlook a "small" expense

It is not okay to

Budget # 5

Not all expenses(like food) are easy to calculate

God's plan for financial prosperity

Proverbs 3:5-10

Budget # 2

Take your time, be thorough, and list all your income and expenses

Budget # 7

When you've listed all your income and expenses, subtract the expenses from income and see what comes out on the "bottom line"

savings account

a bank service in which the depositor puts his $ in the bank for the purpose of drawing interest

Nehemiah 10:37

a bible passage that mentions the tithing principle

no haggle dealership

a car market where price is fixed and final. there's no discussion over final sale price

prompt credit for payment

a card issuer is required to credit your account on the day the issuer receives your payment

name-brand

a famous-name product that may be more expensive due solely to its high-recognition logo or slogan

down payment

a partial payment given in order to show intent of purchase

cashless society

a society where consumers rely solely on credit cards, debit cards, electronic accounts and checks

process

actions which take the check from the merchant to the accounting centers of the bank

free period

allows you to avoid the finance charge by paying your current balance in full before "due date" shown(also called "grace period")

library

an alternative to buying at a bookstore

budget

an itemized account of the possible income and expenditure over a given time

factory direct

another name for manufacturer-to-consumer selling

checking accounts

are good way to keep a responsible account of your spending habits

quick-cook foods

are not a better financial decision than home-cooking

Budget # 6

as a chrisitian, you should be ready and willing to give to the LORD

biblical tithing

basically means you'll give 10% of your income to LORD

better business bureau

consumer "watchdog"; assists the buyer by reporting unfair business practices

finance charge

cost for ethe convenience of borrowing money(like using a credit card)

affinity card issuer

donates portion of annual fees or transaction charges to sponsoring organization

when you sign receipts

draw a line through the blank spaces above the total so nobody may add extra charges to your credit card receipt

solicitation

enticing a person to purchase a product or service

add-ons

extras that are above the standard components of a car

am i

falling behind on bills to my creditors?

banks charge

from $18-$25 for overdraft(and some businesses charge same)

Budget # 3

get out calculator and follow this guideline to get an idea of how costs break down by percentages

I corinthians 16:2

give more than 10%

Fair Credit and Charge Card Disclosure Act

gives you right to compare different cards' conditions.

disputes about merchandise or services

if you have problem with charged product, and you tried to work it out with seller, law gives you the right to withhold from the card issuer payment for the merchandise or services

unauthorized charges

if you report the loss/theft of your card before it's used, you aren't responsible for unauthorized charges

refund of credit balances

if you return a purchase or are made to pay more than you owe, you can keep the credit balance on your account or ask for a refund

earning money in a responsible way

is honoring to God; spending and saving it wisely is just as honorable

deuteronomy 2:11

is one of many bible passages that tell us of the principle of the tithe

errors on your bill

keep credit card reciepts and compare - you may find error. notify card issuer within 60 days

are my creditors charging me with

late fees?

Budget # 4

make it a habit to put $ into a savings account(paying yourself)

impulse buying

making a purchase on the spur of the moment without careful planning

paying on credit

means you actually pay the money yourself, rather than going into debt by using a credit card

keeping a bank balance

means you keep a current total of what you have deposited into your account as well as what you have spent out of your account

debt

money owed to a person or business

middle man

money will not only go to the manufacturer, but also to the store that stocks and sells the product

direct mail applications and pre-approved solicitations

must reveal APR and free periods, annual fees, transaction fees and other charges, adjusted balance, previous balance

month

never charge more on your credit cards than you can afford to pay in one________.

non-sufficient funds

notice sent to customer if his deposits aren't enough to cover the costs of the check he has written

an explanation

of how the card's balances are determined is required to appear on billing statements

over 75%

of the country's $ in circulation is in checkingt accounts

some banks

offer intere3st on the money that's in the checking account

steward

one who manages money or the affairs of a household

transaction fees

other types of costs; might include a fee when you use the card to obtain a cash advance, when you fail to make payment on time, or you go over credit limit

on-line info

phone system allows you to call in to a service center to find out your balance up to the minute

monthly budget

planned income and expenditures for a calender month

federal law

prohibits card issuers from sending you a credit card that you did not request

federal laws protecting cardholders

prompt credit for payment, refunds of credit balances, errors on you bill, unauthorized charges, disputes about merchandise or services

card issuer

required to credit your account on the day the issuer receives your payment

proverbs 22:7

says in effect, that if you borrow $, you're the lender's slave

bank savings book

small journal which is a continually updated account of the $ available in one's savings account

are my checking and savings accounts

smaller than they were six months ago?

expense

something on which money is spent

consignment shop

store that sells an individual's goods in an agreement where both parties split the profit

adjusted balance

subtracting payments you made and credits you received during present billing period from balance owed at end of the previous billing period

check date

tells bank the length of time used in processing of the check as well as the day of purchase

credit limit

the amount of spending that the credit card company will allow you

as-is

the car is purchased with no improvements to be added

bank balance

the current $ available in the depositor's account

payee

the person who will receive the check as payment

minimum balance

the smallest amount allowed in an account without a financial penalty

it is easy

to tell yourself "it's only ten dollars," but you'll find yourself saying that frequently until you wonder where your $ has gone

Am i tempted

to use credit card for a charge when i don't know whether or not I can pay my bills?

gross income

total $ earned, excluding all deductions

affinity cards

transfers a portion of the annual fees or charges to the sponsoring organization of the card

frivolous

trivial, not requiring serious thought; considered silly

checking account

type of bank account that uses written orders to direct payment from a bank based upon the funds available from a depositor's account

wholesale club

type of businiess that eliminates the retail part of the transaction(here you can buy items in bulk)

proverbs 23:4-5

warns against unhealthy desire for wealth: "Labour not to be rich: case from thine own wisdom. Wilt thou set thine eyes upon that which is not?"

step towards cashless society

was when checking accounts were established

retail store

with this kind of store, there's a bit of middle man $ that gets added to purchases($ goes to manufacturer and to store)

overdraw

writing a check for more money than available in your account

annual fees

yearly membership or other participation fees ranging from $25 to $50 for most cards

when you talk with a customer service representative

you can tell them of your particular needs in opening a checking account

memo/signature

your personal autograph attesting to the validity of the checking account; the memo tells of the purchase