Economics Unit 4, Quiz 1, Personal Finances - Mr. Gaffney

checking account

A bank account from which payments can be ordered by a depositor

impulse buying

A buying decision made by customers on the spot when they see the merchandise

Tithe

A family's payment of one-tenth of its income to a church

Subsidized Loan

A need-based loan from the federal government, the interest of which is paid for by the U.S. Department of Education while the borrower is in school and during grace and deferment periods.

Payee

A person to whom a check is written

Grace Period

A time period during which no finance charges will be added to your account

Debit

An amount recorded on the left side

credit

An arrangement to receive cash, goods, or services now and pay for them in the future.

Proverbs 13:11

Dishonest money dwindles away, but he who gathers money little by little makes it grow.

Proverbs 23:4-5

Do not wear yourself out to get rich; do not trust your own cleverness. Cast but a glance at riches, and they are gone, for they will surely sprout wings and fly off to the sky like an eagle.

Proverbs 12:11

He who works his land will have abundant food, but he who chases fantasies lacks judgment.

Proverbs 3:9-10 (Give Generously)

Honor the Lord with your wealth and with the firstfruits of all your produce; then your barns will be filled with plenty, and your vats will be bursting with wine.

compound interest

Interest paid on interest previously earned; credited daily, monthly, quarterly or semiannually

Deferrment

Official permission to postpone the payments of a loan.

1 Corinthians 16:2

On the first day of every week, each one of you should set aside a sum of money in keeping with his income, saving it up, so that when I come no collections will have to be made.

Stewardship

One who manages money or the affairs of a household.

Consignment shop

Retail store where people sell items and the owner of the shop gets a percentage of the sale

Over 75 percent of the country's money in circulation is in checking accounts. T or F

T

check date

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

Expenses

The cost of assets consumed or services used in the process of generating revenues.

Federal Student Aid

The largest form of student aid in the country, federal aid programs come in the form of government grants, loans, and work-study assistance

Federal Pell Grant

This grant is a form of financial aid provided by the Federal government to students whose FAFSA indicates a high level of financial need

middle man

a person who goes between buyers and sellers

Cashless Society

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

Nehemiah 10:37

a tithing principle verse

budget

an estimate of income and expenditure for a set period of time.

default

failure to pay back a loan

income

money received, especially on a regular basis, for work or through investments.

NSF

non-sufficient funds

Capitalized Interest

refers to interest expenditures included in the cost of a self-constructed asset

debt

something, typically money, that is owed or due

Net Income

the difference between total revenue and total expenses when total revenue is greater

Gross Income

the total amount of income from wages before any payroll deductions

When using a debit card, what is the purpose of the four digit code?

to connect the payment to your personal checking account

overdraw

to take more money out of an account than is available in the account. You write a check for $25.00, but your account contains only $20. You will have to pay the bank a penalty charge for going over the limit.