Government and Economics : 9. BUDGET AND FINANCE Lesson 1-4

Proverbs 12:11

"He that tilleth his land shall be satisfied with bread." This verse about a diligent worker comes from

Biblical tithing basically means you will give ____ percent of your income to the Lord.

10

Proverbs

3:5-10 could be titled, "God's Plan for Financial Prosperity."

"Quick-cook" convenience foods are a better financial decision than home-cooking.

False

A check date is necessary so the bank will know the amount of money used in the processing of the check as well as the day of purchase.

False

Pay bills two weeks after due date to keep the finance charges as low as possible.

False

A _____ is assistance from the government which is not to be repaid; the assistance may be thousands of dollars.

Federal Pell Grant

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 thy presses shall burst out with new wine." Where is this passage found?

Here are some questions any young person should ask themselves as they make a budget: Are my creditors charging me with ? Are my checking and savings accounts smaller than they were

Late Fees Six

Never charge more on your credit cards than you can afford to pay in one

Month

13:11 says, "Wealth gotten by vanity shall be diminished: but he that gathereth by labour shall increase." In other words, a person who tries to get money by fraudulent means will not get more, but the steady worker will add to his savings.

Proverbs

Although it is a good idea to pursue financial aid, the Christian teen ought to be diligent to get a job and save as much as possible. "In all labour there is profit: but the talk of the lips tendeth only to penury." The hard worker will be able to meet many financial goals. This work ethic principle is found in

Proverbs 14:23

What is Expected Family Contribution?

The amount of money you and your family will contribute to your college education

On a check, what is the purpose of the memo line?

To serve as a personal reminder of purchases

A famous-name product that may be more expensive due solely to its high-recognition logo or slogan is known as a name-brand product.

True

If you receive a subsidized loan you will not be charged any interest before you begin repayment.

True

It is okay to overlook a "small" expense because it is not much of your overall budget.

True

Which type of federal student aid is being described below? This aid is not awarded on the basis of financial need and is not interest free. The government will charge you interest from the start, making it important to pay interest as it grows.

Unsubsidized Loan

Which has the best system for keeping track of your spending?

Using Checks

unsubsidized

a loan that will charge you interest from the start

subsidized

a loan where you will not be charged any interest before you begin repayment

cashless society

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

Keep a list of your credit card _______ , checking account information, and the telephone numbers of each credit card issuer in a safe place in case your cards or checks are ever lost or stolen.

account numbers

library

an alternative to a bookstore

financial aid

assistance for the potential college student

Federal Pell Grant

assistance from the government which is not to be repaid; may run in the thousands of dollars

Keeping a _____ 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.

bank

You might find bargains at a place where people may take their used clothes or other items and sign an agreement to have the store sell the clothes on consignment, meaning that the store will pick up a percentage and give a percentage of the money to the individual who brought it in for sale. This place is called a:

consignment shop

Official permission to postpone the payments of a loan is known as a:

deferment

federal student aid

government financial help; it may be in the form of a grant or a loan

Total income, before deductions are made, is called

gross income

Middle Man

if you buy items at a retail store, there is a bit of ____ money that gets added on, meaning that money will not only go to the manufacturer but also to the store that stocks and sells the product.

capitalized

interest added to principal amount of loan; more interest will be based upon the higher amount

impulse buying

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

factory direct

manufacturer-to-consumer selling

Many Christians give according to the New Testament verse found in 1 Corinthians 16:2 which is actually _____ than a 10% tithe.

more

deferment

official permission to postpone the payments of a loan

steward

one who manages money or the affairs of a household

check date

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

Expected Family Contribution

the assumed amount that the family will contribute to the student's college tuition

payee

the person who will receive the check as payment

minimum balance

the smallest amount allowed in an account without a financial penalty

frivolous

trivial, not requiring serious thought; considered silly

A _______ is another type of business that eliminates the retail part of the transaction. Many times a consumer can buy products in bulk, or larger quantities than are available in retail stores.

wholesale club

overdrawing

writing a check for more money than is available in your account

checking account

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