Financial Literacy, Section 1 Unit 1
According to the workbook, short term goals in financial planning are usually completed in what time span?
1 year
Three keys to financial success
1. Live within your means2. Save regularly3. create a budget
What hours make up Ante Meridiem?
12am - 12pm
What is the weekly pay for Tami if she worked 35 hours for $7.50 per hour?
262.5
Tami works 30 hours a week, making $7.50 per hour. If Tami worked 5 hours overtime this week, what is her weekly pay with the 1 ½ overtime?
281.25
How many hours of work in one week is considered full time?
40
All of the following words have to do with amounts employers pay to an employee EXCEPT:
Deductions
Which of these best defines the amount of money subtracted from gross pay for tax, social security, or services or memberships?
Deductions
What does the workbook identify as a common trait among rich people?
Frugality
What are common deductions taken out of paychecks?
Health insurance, retirement, and saving plans
What are common voluntary deductions taken out of paychecks?
Health insurance, retirement, and savings plans
What is the key factor determining your income?
How well-educated you are
What is the first step in looking for a job?
Identify occupations
All the following are effective personal financial planning steps EXCEPT:
Invest in stocks
What are a few standard employee benefits?
Medical, disability, and paid time off
What common employee benefits are offered by most U.S. companies today?
Medical, disability, and paid time off
What is the total amount of pay you earn minus the deductions that are taken out?
Net pay
What defines "overtime?"
Number of hours worked beyond a regular full-time workweek
How is a salaried employee paid?
Paid a flat rate per week, month, or year
liabilites
Represents your debt or what you owe (credit card, mortgage, car payment, etc)
Which of the following best describes entrepreneurs?
Risk-taker
What is a deduction?
The amount of money subtracted from gross pay for tax, social security, or services or memberships
What is the fair market value of an item?
What others are willing to pay you now
In the world of financial planning, your net worth is defined as:
Your assets minus your debts
What is the best investment you will ever make?
Your education
What is the definition of net worth?
Your liabilities (or debt) subtracted from your assets
Identifying a job that is important and leads to the lifestyle you want is called?
career plaovertimenning
A=P(1+r/n)^nt
compound interest formula
After you determine your net worth, the next thing you do to create a financial planning action plan is:
create an informed and controlled budget
Define the following terms: earnings, salary, and wages.
earnings - money paid for work performed; also called wages or salary.wages- the total amount earned per hour for a week, month, yearsalary-a fixed amount of money at regular intervals in compensation for work performed
three keys to financial success
goals, decision making, and planning
1-5 years
intermediate goals
assets
represent what you own (cash, car, house, etc)
Gross pay is defined as:
the amount of money before deductions / taxes are taken out
Why are many entrepreneurs risk-takers?
you have the potential of realizing more income from company profits but you all also share in the losses as well
What are the five steps to effective personal financial planning?
your financial goals, develop a plan of action, implement your plan, and finally, review your progress, reevaluate, and revise your plan.
