personal finance Flashcards
(107 cards)
1
Q
Biggest part of your budget.
A
Housing
2
Q
Qualities of a good budget.
A
practical/flexible/geared toward goals
3
Q
The minimum amount you should save.
A
10%
4
Q
Non-profit bank owned by its customers who are the shareholders.
A
Credit Union
5
Q
What debit card feature should you look for if you are going to use the ATM a lot?
A
Free ATM fees
6
Q
Use this when online shopping.
A
Credit card
7
Q
Only thing that cannot be done by online banking.
A
Cash a check
8
Q
Non-sufficient funds, also called overdraft.
A
NSF
9
Q
Use this endorsement when depositing a check at a later date.
A
restrictive endorsement
10
Q
Do this to your blank checks that you are not going to use anymore.
A
shred
11
Q
Write this on a check when you don’t want to use it anymore. Also, make sure to record it in your check register.
A
void
12
Q
S.M.A.R.T. Goal - How often you will save
A
S.M.A.R.T. Goal - Attainable
13
Q
S.M.A.R.T. Goal - How much will you save
A
S.M.A.R.T. Goal - Measurable
14
Q
S.M.A.R.T. Goal - What are you saving for
A
S.M.A.R.T. Goal - Specific
15
Q
S.M.A.R.T. Goal - What is the opportunity cost or what are you giving up to save
A
S.M.A.R.T. Goal - Relevant
16
Q
S.M.A.R.T. Goal - What is the end date of your goal
A
S.M.A.R.T. Goal - Timely
17
Q
An example would be rent or mortgage payment.
A
fixed expense
18
Q
An example would be your ComEd bill.
A
variable expense
19
Q
Not having enough money to cover expenses.
A
budget deficit
20
Q
The money left over after paying bills and putting money into your savings account.
A
Discretionary Income
21
Q
Another way to say net income.
A
Take home pay
22
Q
Gross income minus your withholdings.
A
Net income
23
Q
Review all expenses and cut back.
A
Reconciliation
24
Q
How to fix a budget
A
Comparing your bank statement to your check register.
25
Net deposit
Another name for your total deposit.
26
Liquidity
How quickly and easily an asset can be converted into cash.
27
Compound Interest
Earning interest on interest.
28
The idea of putting money into your savings before spending anything.
Pay Yourself First
29
Savings tools are secure because they are protected by this U.S. government agency against loss.
FDIC
30
Savings Account
This savings tool should be used if you need money for an emergency.
31
When buying a stock, there is a potential to do this.
Lose money
32
The idea that riskier investments can have a higher potential reward.
Risk vs returns
33
File away your check until it is officially deposited then shred it.
Electronic deposit procedure
34
A check that is on your register but not your monthly statement.
A check that is on your register but not your monthly statement.
35
The idea to save for as long as possible at the highest rate possible.
Time value of money
36
This type of stock pays dividends.
Income Stock
37
Examples are baseball cards, beanie babies, and American dolls.
Collectibles
38
You should apply for this if you are denied a credit card or have no credit history
Secured Credit Card
39
You should apply for this if you are denied a credit card or have no credit history
Secured Credit Card
40
Close the account by phone, in writing, and then destroy the card.
Cancel a credit card procedures
41
An option if a 401k is not offered. You may contribute $6000 a year tax deferred.
I.R.A
42
You can view these once a year for free from each of the three main credit reporting agencies.
credit reports
43
This is the amount that S&P 500 goes up on average per year.
10%
44
Not including mortgage, under 20% of your net income.
safe credit limit
45
Pay your credit card statement balance in full every month to avoid this.
interest
46
Having this will cause you to pay a higher interest rate on a loan.
low credit score
47
This index measures the top 30 blue chip stocks.
Dow Jones
48
Paying this means you are going to end up paying a lot more for whatever you bought because of interest charges.
minimum payments
49
Wrongfully acquiring and using someone’s personal identification.
Identity theft
50
Cost more than leasing.
purchasing
51
A company has one of these when they want to go public and raise money.
IPO
52
This type of loan is used when you buy a car and make equal payments. It is another name for closed-end credit.
Installment Credit
53
Evaluate these when purchasing a car.
opportunity costs and trade offs
54
Diversified investment consisting of a variety of stocks and bonds.
mutual funds
55
This type of planning helps you create tax shelters, establishing a trust and writing a will.
Estate Planning
56
The reason your car goes down in value and is not considered in the cost of owning a car.
depreciation
57
A tool used to find the value of a car.
Kelley blue book
58
This is a debt a company issues for a period of time.
bonds
59
People consider cost, proximity to work, and mass transit when looking for one of these.
Apartment
60
Same as renting.
leasing
61
This type of credit requires equal payments until it is paid off.
Closed-End Credit
62
When you owe more than the value of the car.
upside down
63
The costs of using credit, including interest, and late charges.
finance charges
64
This type of investment can generate rental income, should appreciate in value, and has less risk.
real estate
65
A total credit amount is extended in advance so the borrower does not have to apply for credit each time they borrow money.
open end credit
66
Spreading your investments between stocks, bonds, and different industries.
Diversify
67
Character, Capacity, and Capital are a measure of this.
credit worthiness
68
The account has the money collected before tax, helps you save for retirement, and your company may contribute.
401k
69
Group of companies with similar products.
Industry
70
Used to pay for damage done to an apartment.
Security Deposit
71
Value of home minus what you owe.
Equity
72
Examples include a title search, the fee for obtaining a credit report, and title insurance. These do not include repairs needed to be done.
closing cost
73
Type of car insurance that is required.
Liability - Car
74
This is collected by your city. They do not stay the same every year.
property taxes
75
Pays for damages to your car in a hit and run.
liability car
76
Pays for damages to your car in a hit and run.
uninsured/underinsured
77
Cost of using someone's property.
renting
78
The tax form sent by your employer at the end of January summarizing your wages and taxes withheld.
W-2
79
Pays for your car damages if you cause the accident.
collisions
80
Good schools, easy to sell, and appreciate in value.
Picking a home location
81
The amount paid by the policyholder for the initial portion of a loss before the insurance coverage begins.
deductible
82
The tax form summarizing the interest earned.
1099-INT
83
The 3rd party holds money to pay property taxes in this account type.
Escrow account
84
You complete this when you are hired in order to have your taxes calculated correctly on her paycheck.
W-4
85
Federal form is used to reconcile your federal income taxes.
1040
86
A contract between the individual and the insurer specifying the terms of the insurance arrangement.
Policy
87
Is named to receive the benefits from an insurance policy.
Beneficiary
88
When the bank takes house for not making 4 consecutive mortgage payments.
foreclosure
89
An unpredictable event which leads to loss or damage.
risk
90
The amount a policyholder pays for the policy.
premium
91
Insurance that pays for your belongings inside your house when damaged.
personal property
92
This protects the lender, not the person borrowing.
P.M.I
93
Pays for damage to your car caused by natural disasters.
comprehensive
94
Coverage that can be added to a policy, such as towing or rental reimbursement.
rider
95
Prevents discrimination when buying a house.
fair housing act
96
An arrangement between an individual and an insurer to protect the individual against risk.
insurance
97
Pays for medical bills if someone is hurt on your property or dog bites somebody.
Liability - Home
98
Pays for damages to your house.
structural
99
Pays for the damage to the other car if you caused the accident.
Property damage
100
Insuring a portion of your income due to illness or injury that happened outside the workplace.
disability
101
Covers fire in your unit, damage to other units you cause, or your pet attacks somebody in your apartment.
renters insurance
102
An HMO is cheaper but more restrictive, while a PPO is more expensive but offers more flexibility.
PPO VS HMO
103
Pays for the medical bills of the other people if you cause the accident.
bodily injury
104
Term life insurance only pays if the policyholder dies during the term of the policy, while whole life insurance pays a death benefit whenever the policyholder dies.
term vs whole
105
When you lose your job, this program will cover your health insurance premiums for a period of time.
COBRA
106
Covers employees getting sick or injured on the job.
workman compensation
107
Pays for your own medical bills if you cause the accident.
medical bills
