Financial Math Semester 2 Exam review
A significant purchase is usually over
$300.
A good age to open a checking account is between
13-15.
The average mutual fund has
9-200 companies in it.
Net pay is
AFTER TAXES.
Gross pay is
BEFORE TAXES.
To effectively manage money you need a
BUDGET.
There is NO interest charged on
DEBIT card purchase.
There are two parts to FICA
Medicare and Social Security.
Opportunity Costs
Money spent here cannot be spent somewhere else.
Cash advance and title pawn companies charge HIGHER interest rates than
a credit card company.
Men and women have DIFFERENT views
about money.
Roth IRA is
an after tax-tax investment that grows tax free.
Accidental death is a type of insurance to
avoid.
It takes 7+ years to recover your credit from
bankruptcy.
EVERY city has a
city tax.
A key feature in computing your FICO score is your
debt.
In order to have a FICO score you must have
debt.
An overdue payment is called
delinquent.
Credit cards DO NOT make people
financially secure.
You should only buy something you
fully understand.
Every state
has FICA tax withholdings.
The power of cash is
immediate.
The envelope system DOES NOT
include using credit cards for emergencies.
Warranties are like
insurance in that they transfer the risk.
Using a credit card
is a BAD way to find a bargain.
Mutual Funds
is a good and safe investment.
Umbrella policy
is an insurance policy that covers you if you need extra coverage.
The number one cause of divorce in this country
is money issues.
The primary reason for insurance
is to transfer risk.
Rate of return matters when
it comes to compound interest.
Your credit score is affected by
many things.
STATE tax
may or may not be withheld from your paycheck depending on where you live.
A written cash flow is done every
month.
Once you have a fully-funded emergency fund, put
more than1% in your retirement plan.
Identity theft is
most often committed by people you know.
Never keep your social security card
on you/in your wallet.
The best way to buy a car is
purchase used (2 years or older).
You DO NOT need a credit card in order to
rent cars and check in hotels.
If you live in a dorm at college you should still have
renter's insurance.
With investments, as risk goes up
return goes up.
When you leave a company you SHOULD
roll over your 401(K).
INCREASING your deductible is a good way to
save money on your insurance.
ALWAYS use a realtor when
selling a home.
REBATING is
sending in proof of purchase to get free gifts or cash back.
Compound interest provides more ROI than
simple interest.
Building wealth is a
slow process (not fast).
Liquidity is
the availability of your money.
IRA
the tax treatment on virtually any type of investment.
It usually takes 3 MONTHS for your budget
to begin working well.
Diversification means
to spread around.
Spending cash costs LESS than
using a credit card to pay over time.
INCREASING your deductible
usually DECREASES your premium.
The risk return ration says
when the risk goes up, the return generally goes up
A speeding ticket
will not lead to reduced insurance rates.
If you have an emergency fund AND can put at least 10% down
you are ready to buy a house.
If your mortgage payment exceeds 40% of your gross income
you have bought more house than you can afford.
Walk away power means
you leave if you don't get the price you want.
