Test 1 Review Flashcards
Purpose/philosophy of SFL
To help you become a wise steward of your material resources in such a way that you, your spouse and family gain eternal life
4 specific purposes of family finance
- Manage money
- Eternal family values
- Get out of debt
- Magnify financial starships
The four whys of the class
Spiritual: to bring you closer to Christ
Temporal: to help you become wise stewards
Individual: to help you fulfill your divine mission
Family: return together to gods presence
The four what’s of the class
OASA
Ownership: God owns everything
Stewardship: meet all needs and as many worthy wants as possible
Agency: make wise financial choices to save and sacrifice (master the flesh)
Accountability: to others and God
The eight how’s
- Tithing
- Budget
- Minimize/eliminate debt
- Prepare for an emergencies-build reserve
- Invest early
- Insurance
- Share finances as equal partners in marriage
- Teach family about finances
When is it better to have a Roth vs. a traditional Ira?
With a Roth you pay taxes first and then put in money so your tax rate will be lower than in the future. A traditional ira makes you pay taxes after you withdraw
2014 US inflation rate
1.6%
How is an income and expense statement different from a budget?
It is a record of your financial past and is used as a basis for creating a budget and summarizes a period of time between months to a year
Calculating net worth
Net worth = assets - liabilities
SMART goal
Specific Measurable Achievable Realistic, results focused or reportable Timely
What is opportunity cost?
The potential loss or gain that occurs when one financial option is chosen over another
Monetary assets
Financial assets that are legal tender or can be quickly turned into legal tender
How much is a bounced check?
30.47
Criteria for financial institutions
Convenience Cost Consideration Security Gain
Most important criteria for an institution
Convenience
