Personal Finance Final Exam Review. Money Habit Want Need.
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Transcript of Personal Finance Final Exam Review. Money Habit Want Need.
Personal Finance Final Exam Review
Money Habit Want Need
SMART GOAL SPECIFIC MEASURABLE ATTAINABLE RELEVANT TIME BOUND
Goals Short Medium long
Up to three months
Three months to a year
More than a year
Parts of a Budget Income Expenses
Fixed expenses Variable expenses Periodic or
occasional expenses
PYF
Decide Steps1. Define your goal2. Establish your
criteria3. Choose two to three
good options4. Identify the pro’s
and cons’5. Decide what’s best6. Evaluate the results
6 steps to a winning plan1. Decide the time frame for
tracking your income and expenses
2. List your income3. Use your spending log to
create categories and predict amounts for each of your expenses
4. Subtract your total expenses from your total income
5. Implement the plan6. Review and adjust he plan
as needed.
Stop Drop and Think Do I need this or do I
want it? If I don’t need it, why
do I want it? Exactly when will I use
it? Can I find it for less
somewhere else? What will I have to
give up or put off by buying this now?
credit 5 c’s of credit1. Capital2. Capacity3. Character4. Collateral5. conditions
Triple D Approach to fraud
Deter Detect Defend
Pay Yourself First What is it, and
how does apply to concepts you learned in the 5 booklets…?
Items on a Paycheck
Name Address Hours worked Rate of pay Payroll deductions Other deductions
Payroll taxes Federal income
tax State income tax FICA (medicare) Local income tax
Investment Options Booklet 4
Savings Account Money Market Deposit Certificate of Deposit US Savings Bond Stock Mutual funds Real estate Collectibles Start your own business
Risk tolerance
Education options Associates Degree Bachelors Degree Masters Degree Doctorate Degree
Benefits at a job Health insurance Vacation time 401K College
reimbursement Company
discounts
Checking Account Parts of a check Name-address Pay to the order of.. Numerical value Writen out value Signature Memo line Bank routing number Your account number
Bank Fees Monthly service fee Out of network atm fees Check fees Debit fees Nonsufficient funds Overdraft fees Od transfer fees Deposited item returned
fee Stop payment fees
Steps to Reconcile a Checking Account Page 21
1. Go through your statement and check off each transaction in your register
2. Jot down any bank fees you didn’t have listed in your register and subtract them from your register balance
…see page 21 for the rest- booklet 5
…see page 21 for the rest- booklet 5
Bank They sell financial
services.. A bank is owned by its investors, and a paid board of directors runs the bank.
Credit Union Are not for profit
organizations offering the same financial services as banks and are owned by their customers, who are called members.
Identify Theft the illegal use of
someone else's personal information (as a Social Security number) in order to obtain money or credit
How thieves can steal from you? (booklet 5)
1. Don’t trust – verify2. Keep PINS total under
wraps3. Befriend a shredder4. Protect your PC5. Be skeptical of any
offers6. Shop securely7. Surf safely in public