Finances (FINANCIAL INSTITUTIONS), PF- 3 Overview of a Budget, Spending, & Money Management Tools- 10/10/17(Tue.)- Q #1- Budget, financial risks

PF- 3 Q 1: Ashley went to the mall and bought a new pair of jeans that caught her eye. This caused her to go over her credit card limit and now she owes a fee. What tip could have helped Ashley?

- Avoid impulse purchases. - Buy quality products. - Claim exemptions on your tax forms. - Look for bargains. answer: - Buy quality products.

PF- 3 Q 1: Who did not spend wisely?

- Erika looks for bargains online before she goes shopping. - Mia makes a list before she heads to the grocery store. - Erin makes a purchase online using a credit card. She knows that she can pay the entire bill when it arrives. - Lauren buys a cheap pair of headphones. They break, and she needs to buy a new pair. answer: - Lauren buys a cheap pair of headphones. They break, and she needs to buy a new pair.

PF- 3 Sec. 3: Choose all that apply. Taylor wants to create a budget to track her expenses and identify ways she can reduce spending. What tools could she use?

- Quicken - bill pay - spreadsheet - Mint - Budget Tracker answer: - Quicken - spreadsheet - Mint - Budget Tracker

PF- 3 Q 1: The purpose of a budget is to track your income and your spending.

- True - False answer: - True

PF- 3 Sec. 2: Overspending can keep you from achieving your goals.

- True - False answer: - True

PF- 3 Sec. 3: Online banking tools allow you to pay bills from your computer.

- True - False answer: - True

PF- 3 Sec. 1: A saving and investing plan is part of a good financial plan.

- True - False answer: - True - The parts of a good financial plan include a net worth statement, financial goals, a budget, a saving and investing plan, and an insurance plan.

PF- 3 Q 1: Taylor wants to generate a graph to show how she is doing at saving. What tool should she use?

- bill pay - budget software - online banking - graphic software answer: - graphic software

PF- 3 Sec. 1: A variable expense is a _____.

- cost that stays the same from month to month - cost for completing a budget - cost listed in a budget - cost that changes answer: - cost that changes

PF- 3 Q 1: A fixed expense is a _____.

- cost that stays the same from month to month - cost for completing a budget - cost listed in a budget - cost that changes answer: - cost that stays the same from month to month

PF- 3 Sec. 3: Spreadsheet software can be used to do all the following except _____.

- create a budget - calculate your net worth - open a savings account - create a graph answer: - create a graph

PF- 3 Q 1: Spreadsheet software can be used to _____.

- create a budget - send your net worth to a loan officer - apply for a car loan - create a graphic answer: - create a budget

PF- 3 Q 1: Jeff cannot find any of his receipts for entering into his budget. In addition, he cannot find any of his bank statements. Jeff should _____.

- go back to each store to collect the receipts - get organized by purchasing some file folders and filing his paperwork - spend less money so he doesn't have so many receipts - pay for everything on a credit card so he can track his spending from his credit card statement answer: - pay for everything on a credit card so he can track his spending from his credit card statement

PF- 3 Sec. 1: All the following are benefits of having a budget except _____.

- knowing how much you owe in taxes - reducing stress - being a better steward of God's resources - avoiding financial problems - making your money grow - knowing what you can afford answer: - knowing how much you owe in taxes

PF- 3 Q 1: In order to create a budget, you should _____.

- list your income and your assets and find the total - list your expenses and calculate the total - add all of your income and expenses and subtract the taxes - list and total your income, list and total your expenses, and subtract your expenses from your income answer: - list and total your income, list and total your expenses, and subtract your expenses from your income

PF- 3 Sec. 1: Choose all that apply. Select all the parts of a financial plan.

- net worth statement - savings account - financial goals - savings and investing plan - insurance plan - checkbook register - budget answer: - net worth statement - financial goals - budget - savings and investing plan - insurance plan

PF- 3 Q 1: Choose all that apply. Online banking tools allow you to _____.

- pay bills from your computer - transfer money from one account to another - view checking account transactions - look for bargains answer: - pay bills from your computer - transfer money from one account to another - view checking account transactions

PF- 3 Sec. 3: Randy has a hard time remembering to pay his bills on time. Which feature would you recommend for Randy?

- printable graphs - calendar - automatic notices when your checking account is - getting low - ability to calculate totals answer: - calendar

PF- 3 Q 1: Randy would like to set up a budget for a vacation he is taking next year. Which money management tool should Randy use?

- printable graphs - spreadsheet - online banking - Expensure answer: - spreadsheet

PF- 3 Q 1: A net worth statement, financial goals, and a budget are all part of a _____.

- saving and investing plan - savings account - long-term financial goal - financial plan answer: - financial plan

PF- 3 Q 1: Tips for spending wisely include the following except for _____.

- using credit cards infrequently - tracking your spending - borrowing money from reliable friends - avoiding impulse purchases answer: - borrowing money from reliable friends

List five risks that were discussed in this lesson.

1 scams 2 identity theft 3 job loss 4 product failure 5 investment loss

Choose all that apply. Select all the strategies you can use to manage risks. buy health insurance provide your personal information to others have an emergency fund have a warranty become informed carry lots of cash

Choose all that apply. Select all the strategies you can use to manage risks. buy health insurance have an emergency fund have a warranty become informed

Name four reasons for keeping your money in a financial institution.

Safety - To keep your money safe from burglars. Convenience - Its easy to get your money out of the ATM when you need it. Growth - If you put your money in a savings account you can collect interest. Security - Leaving your money in the bank will make sure that even if your money is stolen you can get it back.

Review

There are benefits to keeping your money in a financial institution. These benefits include safety, growth, convenience, security, financial future, and cost. There are three main types of financial institutions: banks, credit unions, and savings and loans. In this lesson, you looked at the differences between these organizations, as well as at factors that should affect which financial institution you select. These factors are: fees, locations, services, interest, hours, and minimum account balance.

PF- 3 Q 1: In one or two sentences, describe why it's important to spend wisely.

Writer: It's important to spend wisely because you have to be careful on how much you spend from your receipt. If you wanted to give something back from a store; you have to hold on to your receipt in order to get your money back - otherwise, you wouldn't be able to prove that you paid it before you hand back the item. Therefore, you should spend less time of money and should spend it on things that are more important.

PF- 3 Sec. 2: Describe how you can spend wisely or improve your spending habits.

Writer: Some ways to spend money wisely are avoiding impulse purchases, think about what's most important, track your spending, and be content with what you have.

PF- 3 Q 1: In one or two sentences, describe the benefits of having a budget.

Writer: Spreadsheet can create budget. Some of the things that you can track your expenses and identitify ways to reduce spending are Quicken, Mint, and Budget Tracker.

PF- 3 Sec. 1: In two to three sentences, describe how you would organize your financial information.

Writer: There are five parts to a organize your financial information. They are: net worth statement, financial goals, budget, saving and investing plan, and insurance plan. Another way to organize your financial information are bills, receipts, and account statements.

credit union

a nonprofit financial institution formed by a large corporation or organization for their employees and members

beneficiary

a person who receives the payment from a life insurance policy

budget

a plan for how you will spend and save your money

financial institution

a public or private organization that collects and invests money and offers financial services

co-payment

an amount the insured person pays to cover a portion of a doctor bill or cost for prescription

PF- 3 Sec. 2: Who is not spending wisely? - Erika goes shopping and saves her receipts. She totals how much she spent and writes it down. - Mia needs to buy a new pair of shoes because she joined the soccer team. She looks at newspaper ads to find the best price. - Lauren has been thinking about getting a puppy for a long time. She walks by the pet store at the mall and decides to get a puppy. - Erin makes a purchase online using a credit card. She knows that she can pay the entire bill when it arrives.

answer: - Lauren has been thinking about getting a puppy for a long time. She walks by the pet store at the mall and decides to get a puppy.

PF- 3 Sec. 2: Choose all that apply. Tips for spending wisely include _____. - tracking your spending - avoiding impulse purchases - using credit cards infrequently - borrowing money from your friends - looking for bargains - avoiding buying gifts

answer: - avoid impulse purchases - looking for bargains - using credit cards infrequently - tracking your spending

PF- 3 Sec. 2: Spending wisely _____. - takes a lot of time - makes you a better steward of God's resources - increases stress - means using a credit card for most of your purchases

answer: - makes you a better steward of God's resources

PF- 3 Sec. 3: A _____________ is software that contains rows and columns used to make calculations, organize information, and make comparisons.

answer: spreadsheet

variable expenses

costs that change in amount

fixed expenses

costs that remain the same amount

A financial institution formed by a large corporation for their employees is a _____.

credit union

covetousness

desire for the wealth or possessions of others

A financial institution always keeps all of your money in the vault.

false

Phishing is looking for and reporting online scams. True False

false

Life insurance _____. covers hospital bills pays for repairs on cars pays a certain sum of money to a beneficiary in case of death covers the costs associated with life

pays a certain sum of money to a beneficiary in case of death

phishing

requesting confidential information over the internet under false pretenses to fraudulently obtain credit card numbers, passwords, or other personal data

Choose all that apply. The main types of financial institutions are _____.

savings and loans banks credit unions

Choose all that apply. When selecting a financial institution that is the best for you, you should consider _____.

services offered locations of banks and ATMs fees

spreadsheet

software that contains rows and columns used to make calculations, organize information, and make comparisons

deductible

the amount a person has to pay when making an insurance claim, with the remaining cost covered by the insurance company

bodily injury limit

the most the insurance company will pay

Jen heard that the bank where she kept her money was going to close for good. Jen said she wasn't worried. Select the most likely reason that Jen wasn't worried.

She knew that her money was insured by the FDIC.

savings and loan

a financial institution that specializes in home loans

claim

a request for payment from an insurance company

insurance policy

an agreement to cover or reimburse an individual for a loss that occurs

premium

the amount paid by the policyholder for insurance

identity theft

the crime of stealing an individual's personal information in order to gain from that person's finances

PF- 3 Sec. 1: A budget is a _____.

- net worth statement - plan for saving and spending your money - table that lists your goals for saving and investing - list of what you spent last month answer: - plan for saving and spending your money

PF- 3 Q 1: A good financial plan does not really need to include an insurance plan.

- True - False answer: - False

PF- 3 Sec. 1: Net worth is the amount you have, plus the amount you owe.

- True - False answer: - False - ...'minus' the amount you owe.

PF- 3 Sec. 3: In two or three sentences, describe how you would use some of these tools to help manage your money.

Writer: I would organize data you need in order to prepare taxes. Calculate the amount of your mortgage payments or car payments.

bank

a business and financial institution; a safe place to keep your money

scam

a fraudulent scheme used to make money

The purpose of insurance is to _____. pay for repairs when you can't pay for them help protect you from financial loss protect you from getting sick and needing a doctor pay for insurance premiums

help protect you from financial loss

liability coverage

insurance that covers injury or loss to other people, for which injury or loss you are responsible

property coverage

insurance that covers the contents of your home, such as furniture, television, bikes, appliances, and clothing

consumer rights

laws that protect people who make purchases

Jim purchases land hoping that the value of the land will increase over the next five years. What risk does Jim face? scam theft losing money in an investment paying for expensive repairs

losing money in an investment

impulse purchases

purchases that are not planned

PF- 3 Sec. 2: Ashley bought an expensive pair of jeans. Her friend got the same pair of jeans for almost $20 less. What tip could have helped Ashley?

- Use credit cards infrequently. - Buy quality products. - Think about what is most important. - Look for bargains. answer: - Think about what is most important.