FHCE 3100 Chapter 13

Long-range

1 year or more

False

Tax avoidance is an illegal money management strategy to reduce one's taxes through such investments as tax-deferred individual retirement accounts (IRAs) or charitable donations.

Job loss, medical or dental emergencies, car troubles, unexpected home repairs.

An emergency fund of three to six months of expenses should be kept to cover all following (select all that apply). Job loss, medical or dental emergencies, lunch with bestie, car troubles, unexpected home repairs.

Equal Credit Opportunity Act (ECOA)

You cannot be denied credit based on your race, sex, marital status, religion, age, national origins, or receipt of public assistance.

Fair Reporting Act (FCRA)

You have the right to know the name of anyone who received your credit report in the last year.

Fair Credit Billing Act (FCBA)

You have the right to resolve any failure to reflect payments, credits, or electronic fund transfers properly.

Truth in Savings Act

requires financial institutions to reveal the annual percentage yield, fees charged, and information about rules regarding maintaining a minimum balance.

Bankruptcy

a form of legal resources open to insolvent debtors

Money market accounts

a type of account that offers a higher rate of interest than most checking or savings accounts and may require a minimum balance be maintained in the account.

cosigner

agrees to repay the loan if the borrower does not (defaults).

Deductions

expenses subtracted from income before figuring out the amount of taxes owed

Short-term

less than two months

financial planner

looks at a person's or a family's total financial picture, helps that person or family define and prioritize goals, and then works out a plan to achieve those goals

Nexting

when people buy or attain an item, and their minds are already thinking of their next purchase or goal.

Intermediate

2 months to 1 year

Chapter 13 bankruptcy

Allows debtors to repay some of the debt they owe, and in return, they get to keep most of their property.

Liens

Are legal rights to take and hold property if the person with the loan does not pay up.

True

As a cosigner, if the original borrower defaults, you will have to repay the loan.

Awareness and setting financial goals. Creating and activating financial plans evaluating and revising plans: moving forward.

Creating and activating financial plans evaluating and revising plans: moving forward. Awareness and setting financial goals.

Chapter 7 bankruptcy

Erases all dischargeable debt

Investment risk, personal risk (health and safety), inflation risk, status risk, income risk (loss of income)

Financial goals are affected by risk, the possibility of experiencing loss or harm. Select all the types of risks that are faced. Investment risk, personal risk (health and safety), inflation risk, status risk, income risk (loss of income)

True

In order for a goal to be successful, goals should be flexible, action-oriented, specific, and realistic.

Attitudes

Likes and dislikes

True

Negative information can stay on a person's credit report for seven years and bankruptcy for ten

Values

Principles that guide behavior

Decision-making

Process of making a choice between two or more alternatives

Federal Deposit Insurance Corporation, National Credit Union Administration

Some types of bank accounts are protected by the ... while certain credit union accounts are protected by the .... .

Resources

Sources of wealth

Equifax Information Service Center, Trans Union LLC Consumer Disclosure Center, Experian Consumer Assistance Center

Which of the below are considered one of the three main credit reporting centers/bureaus? -Equifax Information Service Center, Trans Union LLC Consumer Disclosure Center, Experian Consumer Assistance Center, Credit Karma

Certified Public Accountants (CPA), Personal Financial Specialist (PFS) , Chartered Financial Consultant (ChFC) , Certified Financial Planner (CFP)

Which of the below are recognized credentials for financial planners? Select all that apply. Certified Public Accountants (CPA), Personal Financial Specialist (PFS) , Chartered Financial Consultant (ChFC) , Certified Financial Planner (CFP)

Personal finance

an umbrella term that covers spending, saving, investing, and protecting financial resources.

Credit cards

are used to purchase something or to get cash now with the promise of future payment

debts

bonds, notes, mortgages, and other forms of paper evidencing amounts owed and payable on specified dates or on demand