Financial Literacy BM #1+#2
What symbol is used for absolute cell reference?
$(dollar sign)
6 Reasons Why You Need a Budget
1)It helps keep your eyes on the prize 2)It helps ensure you don't spend money you don't have 3)It helps lead to a happier retirement 4)It helps you prepare for retirement 5)It helps shed light on bad spending habits. 6)It's better than counting sheep(wishful thinking)
2 methods for searching for a function
1)On the formula tab, in the Function Library, browse for a function. 2)On the formula tab, click insert function and then search a key word or phrase.
Zero-Based Budget
A cash flow plan that assigns an expense to every dollar of your income, wherein the total income minus the total expenses equals zero; does not mean that your checking account should go down to zero. Money should be left in your checking account and then save up for emergency funds and pay off debt.(bottom-line number that your willing to spend. Could be $100 or $400, there may be unexpected payments throughout the month)
What is an Installment Loan?
A one-time loan that you pay back in fixed monthly payments
What is a worksheet?
A spreadsheet contained within a workbook(excel sheet)
What is the 50/20/30 rule?
After calculating after tax income- 50% of Income spent on Necessities 20% of Income spent on Savings 30% of Income spend on Wants
What is a logical expression?
An expression that evaluates to either true of false.
What Type of Credit is a Small Business loan(from bank)?
CBE, secured, CBE
What is a Revolving credit?
Credit that lets the borrower choose how much of the credit to use and when to pay it
Wants
Desires that can be satisfied by consuming a good or service
What is the name box?
Displays the cell address of the selected cell.
Excel Page Layout View
Divides the worksheet into separate pages
What is a cell?
Each rectangle in a spreadsheet is called a cell. It can contain numbers, texts, formulas, and functions.
Income Statement
Earning and expenses over a period of time
Net Income
Gross Income minus expenses
What is the Ctrl Key method for selecting cells?
If cells you want to select are scattered across the worksheet, click the first cell and hold down the Ctrl Key. Then click on all other desired cells. Then release the Ctrl Key.
What is the Shift Key method for selecting multiple cells?
If you want to select a large amount of cells, click on the first corner of the desired block of cells and then find the opposite side of that corner and click on that corner cell while holding down the Shift Key.
Disposable Income
Income left after taxes have been paid for(interchangeable with net income)available for saving, transportation, utility, mortgage/rent, etc(money available for our necessities)savings are for Emergency Fund(3-6 month)
What Type of Credit is an Auto Loan?
Installment, secured, fixed
What Type of Credit is a Payday Loan?
Installment, unsecured, fixed
What Type of Credit is a Student Loan(Federal)?
Installment, unsecured, fixed
What is Auto Fill?
It automatically fills cells with the data or formatting.
Does more money equal more wealth? Why or why not?
No it doesn't. You could be in a lot more debt even though you may have a lot more money compared to someone who has little money but also has little debt. The person with less money is likely to be more wealthy.
What can a cell contain?
Numbers, Text, formulas, and functions
Excel Normal View
The default view of a worksheet
What does an IF statement do?
The if statements is used to check a condition and if the conditions is true(=IF(condition, true,false))
What is the click and drag method?
The most common way to select multiple cells(Click on first cell and drag to desired cell to select an area of cells)
Gross Income
The total income, before deductions, made in a year.
Needs
Things that are required in order to live
How do you move between cells?
Using the arrow keys.
What is the cell's address?
Where a row and column intersect. It is named first by the column than the row(Letter than number)
Financial Literacy
ability to make smart financial decisions which result into desired financial outcomes
Which of the following is NOT a benefit of using a budget? a.A budget can help you make plans to reach your financial goals. b.A budget can help you purchase anything you want. c.A budget can help you keep track of your money. d.A budget can help you decide the importance of your expenses.
b. A budget can help you purchase anything you want
The envelope method, notebook and pencil, and online software are all methods of ______. a.planning for your future b.tracking your spending c.understanding your current expenses d.estimating your unexpected expenses
b. Tracking your spending
Which of the following should NOT be considered when setting a current budget? a.Your Financial Goals b.Future Income c.Savings d.Needs and Wants
b.Future Income
Which of the following is TRUE regarding unexpected expenses? a.They usually don't affect your ability to pay bills. b.They should be planned for. c.They should not be included in your budget. d.They usually don't affect your budget.
b.They should be planned for
This helps you prepare for unexpected expenses. a.Credit cards b.Checking account c.Emergency fund d.None of the above
c.Emergency Fund
In addition to needs, what should you plan for first when creating a budget? a.Investments b.Shopping money c.Recurring expenses d.Possible charitable donations
c.Recurring Expenses
Where should you look to find your current expenses when building your budget? a.your bank representative b.ask your parents c.bank and credit statements d.your wallet
c.bank and credit statements
Relative Cell Reference
cell reference that adjusts to a new location when copied or moved(reflects the distance of the copy)
How can you ensure you don't go over your budget? a.Find a friend that enjoys going shopping b.Buy all of your wants at one time. c.Use most of your budget for entertainment expenses d.Round up your expense estimates to add a buffer
d. Round up your expense estimates to add a buffer
Which of the following would be a good reason to spend money from an emergency fund? a.Buy new track shoes because they're in style. b.Upgrade your phone to the latest model. c.Purchase concert tickets to see your favorite artist. d.Repair your laptop that you use for homework.
d.Repair your laptop that you use for homework.
What is unsecured debt?
debt that is not tied to a specific asset; there is no collateral that can be repossessed if borrow defaults
What is secured debt?
debt that is tied to a specific asset that can be used as collateral and repossessed if borrower doesn't make payments
Liabilities
debts that you owe; expenses(ie. credit, cars, depreciating items)
Variable Expenses
expenses that change from month to month; not always the same each payment cycle(grocery bill, utilities can change, data bill if limited, gas payment for car)
Discretionary Income
income left over after necessities such as food or shelter have been paid; Disposable Income - Necessities(Money used on whatever is wanted)(Saving is for something you want or additional investments)
What Type of Credit is a Mortgage?
installment, secured, CBE
What Type of Credit is a Personal Loan?
installment, unsecured, CBE
What are variable rates?
interest rates that can change during the duration of the loan based on the prime rate or an index rate
What are fixed rates?
interest rates that remains constant during the duration of the loan
Assets
money and other valuables belonging to an individual or business; earnings(income producing assets; ie. rent)
Fixed Expenses
never fluctuate(don't change much each payment)(ie. car payment, mortgage, utilities, subscriptions, insurance) more likely to be "loans"
Absolute Cell Reference
A cell reference that does not change when copied or moved to a new cell(could do absolute on row and/or column)
What is a row?
A group of cells that run horizontally; identified by numbers
What is a column?
A group of cells that run vertically; identified with letters
Balance Sheet
A financial statement that reports assets, liabilities, and equities
What is the function for concatenate?
=CONCAT(Cell,"_",Cell) or =Cell&"_"&Cell
What is a workbook?
It is all the worksheets combined together; an excel file
Excel Page Break View
Let's you see an overview of your worksheet. Helpful for manually dividing a worksheet into different pages.
What does concatenate mean?
Means to link together or join in a series.
When setting a budget, you should consider... a.mostly your goals. b.financial goals, current expenses, and income. c.mostly income. d.creative ways to spend your money.
b.financial goals, current expenses, and income
What Type of Credit is a Credit Card?
revolving, unsecured, CBE
What are expenses?
the costs of operating a business(money that is owed to an entity or person)
