Personal Finance

_____ ____ statement, or the personal income and expenditure statement, is the actual inflow, outflow for a given time period.

cash flow

according to the textbook, you should keep copies of tax returns and supporting data for ____ years. according to decosmo, you should keep personal tax returns for ___ years.

6,3

chapter 2 objective 1: describe the activities associated with career planning and advancement the average person changes jobs more than ___ times over a lifetime.

7

advantage of personal financial planning: increased _______ of financial affairs.

control

a ____ ____ should have three paragraphs; an intro, development, and conclusion.

cover letter

the _______ paragraph of a cover letter should specify your qualifications, refer to details on resume, and describe experiences and training

development

chapter 2 objective 2: evaluate factors that influence employment opportunities. high interest rates, price increases, and decreased demand for goods and services are things that affect career opportunities in terms of ______ conditions.

economic

_______ is the study of how wealth is created and distributed

economics

a ______ plan is a formalized report that summarizes your current financial situation, analyzes your financial needs, and recommends future financial activities.

financial

the level of career training affects _______ success. for example, a 2 yr degree makes about 1.4 million more in a lifetime than someone who dos not have a degree. 4 yr degree makes about 2.4 million more, and a masters makes about 2.8 million more.

financial

types of income subject to taxation include: earned income, investment income, passive income, and other. passive income is.....

from business activities

a _______ resume focuses on your skills

functional

some good financial habits to develop include using a well-conceived spending plan, becoming informed of tax and investment alternatives, and having appropriate ______ coverage to prevent financial disasters.

insurance

_______ ______ are cash or anything that can be turned into cash within the next year, like real estate, personal possessions, or investment assets.

liquid assets

chapter 1 objective 2: develop personal financial goals. financial goals influenced by time frame are divided into three groups. short term, intermediate, and long term. _____ _____ goals should be planned in coordination with the other two.

long term

a _____ should include a personal data section, a career objective section, an education section, an experience section, a related information section, and a references section.

resume

this kind of income cannot be taxes

tax exempt

take advantage of tax benefits while paying your fair share of taxes. this is called

tax planning

an effective ___ _______ is vital for successful financial planning.

tax strategy

_____ income is your net income after deductions

taxable

________ skills refer to specialized career training for a specific profession.

technical

career training is divided into two main categories; _______ skills and _____ skills

technical, general

chapter 1 objective 3: assess personal and economic factors that influence personal financial planning this objective deals with the _____ life cycle stage. personal factors in this stage include marital status, household size, employment, and major events such as graduation, children, and marriage

adult

step 3 of preparing a balance sheet is computing net worth. two ways of finding this: assets - liabilites = net worth or .....

assets = net worth + liabilities

about ______ of each dollar you earn goes to pay taxes.

1/3

about __ million career moves occur each year

10

tax form _____ - required to us this if income is over $50,000; use to itemize deductions

1040

tax form ____ - taxable income less than $100,000, adjustments allowed, tax credits for child care and dependent care.

1040A

tax form_____ - used to amend a previously filed return

1040x

the 1040ez is the quickest and easiest to file. for singles or marrieds jointly, no more than $_____ taxable interest. and no more than $______taxable income. do not itemize or claim adjustments.

1500, 100000

there are ___ types of audits

3

in networking, you should prepare a _____ second summary of abilities

30

future value of a SERIES of deposits is called an ______

annuity

____ are things you own

assets

how often should you review and/or revise your financial plan? this is in terms of a regular situation, with no change in personal, social, and economic factors, which would beg a more frequent review.

at least once a year

a _______ is a spending plan

budget

_____ are subject to change.

budgets

______-style benefits allow workers benefit credits which they can choose to meet their needs.

cafeteria

a ______ resume is the most common. it focuses on experience and education in reverse-time sequence.

chronological

the 4 different types of resumes are

chronological, functional, targeted, and e-resumes

the _________ paragraph of your cover letter should ask for an interview, include contact info, and summarize how you can help the company.

concluding

chapter 1 objective 2: develop personal financial goals ________ products are things we buy on a daily basis, such as food or movie tickets

consumer

time (most important), health, leisure; these are personal opportunity _____

costs

chapter 1 objective 2: develop personal financial goals _______ produce are more expensive items that we buy every once in a while, such as TVs or ipods

durable

a ______ resume uses a simple format with no attachments.

e-resume

chapter 2 objective 2: evaluate factors that influence employment opportunities. _______ conditions include interest rates, inflation, and consumer demand

economic

chapter 2 objective 4: assess the financial and legal concerns related to obtaining employment. the two BIGGEST factors affecting salary are _______ and _______ ____

education, company size

_____ spending is a great employee benefit, but you better "use it or lose it"

flexible

there are ___ types of taxes

four

advantage of personal financial planning: sense of _______ from financial worries

freedom

_____ ______ of a single amount is the amount to which current savings will increase based on a certain interest rate and a certain time period. this is also called COMPOUNDING - earning interest on previously earned interest.

future value

_______ skills are traits adaptable to most work situations. some can be acquired at school, while others require experience.

general

there are three steps for preparing a cash flow statement; 1, record _____ 2, record cash _______ 3, determine ____ ____ flows

income, outflows, net cash

chapter 1 objective 2: develop personal financial goals _______ purchases are things that would be difficult to replace, such as a house or a car

intangible

chapter 1 objective 3: assess personal and economic factors that influence personal financial planning. the level of money supply affects _____ rates

interest

the ____ paragraph of a cover letter should get the readers attention and provide an overview of your qualifications.

intro

a ____ is an employment position obtained mainly to earn money. a _____ is a commitment to a profession that requires continued training.

job, career

step 2 of preparing a balance sheet is determining the amounts owed. these are your ______ or things you owe. current _____ are <1yr. anything over that is long term.

liabilities

step 1 of preparing a balance sheet is listing items of value. these include assets and ______ assets

liquid

itemized deductions are things like medical and dental expenses, mortgage interest, etc. itemized deductions are only in the ____ ____

long form

a _____ is an experienced employee who serves as a teacher and counselor for a less experienced person. they are attracted to those who show initiative and they should be receptive to assisting others and help in both technical and social areas of their careers.

mentor

______ ____________ is the day-to-day financial activities needed to manage personal economic resource, while working toward long-term financial security.

money management

_______ is the process of making and using contacts to obtain and update career information. the main sources of doing this include business contacts, professional organizations, and community organizations.

networking

chapter 2 objective 4: assess the financial and legal concerns related to obtaining employment. some _______ benefits include child care, leaves of absence, and elder care.

nonsalary

an _______ ___ is what you give up when you make a choice.

opportunity cost

______ is the most important way of maintaining personal financial records.

organization

to find cash flow (refers to a time period): total cash received - cash _____ = cash surplus (deficit)

outflows

the ______ ______ of a single amount is the current value of a future amount based on a certain interest rate and a certain time period. this is also called DISCOUNTING.

present value

what three amounts are required in order to calculate the time interest of money (or interest)?

principle, interest rate, time

the four types of taxes are...

purchases, property, wealth, earning

advantage of personal financial planning: improved personal _______

relationships

chapter 2 objective 4: assess the financial and legal concerns related to obtaining employment. you should ALWAYS do this before accepting an employment position

research

gathering info from financial planning sources is the best way to minimize ______

risk

when preparing for a job interview, get info about your prospective employer, prepare questions to ask, and practice interview skills. during an interview NEVER ask about _____

salary

present value can be computed for a single amount or for a _______ of deposits

series

the five filing status categories are....

single, married jointly, married separately, head of household, widow

use the STAR principle to highlight experiences and achievements when making your resume. STAR stands for____

situation, task, actions, and result

Chapter 3 objective 1: recognize relationships among financial documents and money management activities. daily ______ and ______ decisions are the heart of financial planning.

spending, saving

adjusted gross income (AGI) is gross income after certain reductions have been made. these reductions are called adjustments to income. these include things like....

student loans

a ______ resume is prepared for a specific job

targeted

a _____ ____ is an amount subtracted directly from the amount of taxes owed, such as earned income, child, and dependent credits.

tax credit

a ____ ______ is an amount subtracted from the AGI to arrive at a taxable income

tax deduction

this kind of income will be taxed at a later date

tax deferred

chapter 2 objective 2: evaluate factors that influence employment opportunities. industry trends include foreign competition, and the changing uses of _______

technology

the cost, or trade-off, of a decision cannot always be measured in dollars. sometimes the cost is your _____

time

how to compute simple interest; amount in savings x annual interest rate x _____ = interest

time period

increases in an amount of money as a result of interest earned is defined as the _____ (or interest)

time value of money

about __% of all returns are audited

1

what is the formula for calculating the time interest of money (or the interest)

P x R x T

exclusions are....

amounts not included in gross income

you have _____ _____, including time to prepare for the audit and clarification

audit rights

a person's _____ tax rate is based on the total tax due divided by taxable income. this rate is less than the person's marginal tax rate.

average

tax ______ is the legitimate method to reduce your tax obligation to your fair share and no more

avoidance

the _______ sheet also called the net worth statement or statement of financial planning

balance

chapter 2 objective 2: evaluate factors that influence employment opportunities. ________ trends in career opportunities include statistics like longer life spans and being a working parent, because longer life spans means higher demand for things like health care, and being a working parent means demand for healthcare and food service.

demographic

applying for _________ requires at least these three things; a resume, cover letter, and an interview.

employment

chapter 2 objective 3: implement employment search strategies. some good ways of obtaining ________ _______include part-time employment, volunteer work, internships, and campus projects

employment experience

tax ____ is the illegal act of not paying the taxes you owe, such as not reporting all income

evasion

an ______ is a deduction for yourself, your spouse, and qualified dependents

exemption

chapter 1 objective 3: assess personal and economic factors that influence personal financial planning global influences included in this section include the balance of ____ and ____, foreign investments, the level of money supply, and the competition between American and foreign companies.

exports, imports

chapter 1 objective 2: develop personal financial goals. financial goals can be influenced by two things. these are time fram and/or _______.

financial need

goals developed for different_______ ______can be divided into three groups; consumer product goals, durable product goals, and intangible purchase goals

financial needs

advantage of personal financial planning: increased effectiveness in obtaining, using, and protecting _______ ______.

financial resources

chapter 2 objective 2: evaluate factors that influence employment opportunities. social influences include demographic trends and _______ trends.

geographic

chapter 2 objective 2: evaluate factors that influence employment opportunities. where jobs are; salaries, and living costs are things associated with ______ trends in career opportunities.

geographic

chapter 1 objective 4: calculate time value of money situations associated with personal financial decisions. every financial decision involves ______ ___ something to obtain something else.

giving up

chapter 1 objective 3: assess personal and economic factors that influence personal financial planning this objective deals with economic and personal factors, as well as ______ influences

global

specific, measurable, action-oriented, realistic, time-based; this is the SMART model which helps to guide our ____ setting

goal

______ are what you OWE

liabilities

____ ____ is an indication of the financial position at any given date.

net worth

the process of managing your money to achieve personal economic satisfaction is

personal finance planning

chapter 1 objective 5: identify strategies for achieving personal financial goals for different life situations. the components of ______ ________ planning are; obtaining, planning, saving, borrowing, spending, managing risk, investing, and retirement and estate planning.

personal financial

chapter 3 objective 3; develop a personal balance sheet and cash flow statement. the purpose of ______ _______ statements is to measure progress toward your financial goal, maintain info on financial activities,report current financial position in relation to the value of items you own and the amounts you owe.

personal financial

the ________ _____ of the amount you want in the future will always be less than the future value.

present value

how many steps are there in the financial planning procedure?

six

preparing a balance sheet requires 3 steps; listing items of ____, determining the amounts ____, and computing net _____

value, owed, worth