Budget Challenge

Question 1

Should a person include “wants” when creating a budget?

Answer 1

yes

Question 2

What is the difference between wants and needs?

Answer 2

a need is something you need in order to survive and wants are something that you desire but don’t need to survive

Question 3

total amount of money being transferred

Answer 3

cash flow

Question 4

What should you do before signing any type of contract or agreement?

Answer 4

read it

Question 5

What are some strategies to avoid late fees and negative impacts on your credit score?

Answer 5

you can select your own payments

Question 6

What are benefits/disadvantages of being a salaried employee?

Answer 6

benefits:
more benefits
more predictable
disadvantages:
no overtime pay
more stressful

Question 7

When is an employer required to pay overtime?

Answer 7

any work over 40 hours

Question 8

What type of bank is most likely to have hundreds of branches throughout the U.S.?

Answer 8

commercial bank

Question 9

What is a benefit of debit cards?

Answer 9

helps keep track of your spending

Question 10

What are benefits of using credit unions?

Answer 10

lower fees

Question 11

What are benefits to using electronic funds transfers (EFTs)?

Answer 11

faster transactions

Question 12

What are the typical fees financial institutions charge?

Answer 12

ATM fees

Question 13

a person or an organization that lends money to customers who must pay it back when they receive their next pay

Answer 13

payday lender

Question 14

do payday lenders have high or low interest rates

Answer 14

low

Question 15

When would it make sense to use a payday lender or cash advance store?

Answer 15

if you have an urgent need or require cash quickly and are certain you’ll be able to pay the loan back with your next paycheck

Question 16

the schedule over which you gain ownership of various benefits

Answer 16

vesting period

Question 17

What should you do with your retirement funds from a previous job if you get a new job?

Answer 17

keep it with your previous employer

Question 18

What percentage of your retirement investments can you withdraw annually in retirement and not run out of money?

Answer 18

4%

Question 19

what you have to give up to buy what you want in terms of other goods or services

Answer 19

opportunity cost

Question 20

a decrease in the value of something over time

Answer 20

depreciation

Question 21

a fraudulent operation by which an e-mail user is duped into revealing personal or confidential information which can be used for illicit purposes

Answer 21

phishing

Question 22

What is the most common type of identity theft?

Answer 22

financial identity theft

Question 23

What type of insurance does a full-time college student typically need to purchase?

Answer 23

healthcare insurance

Question 24

What is the minimum requirement to be accepted into the military?

Answer 24

17-39 years old and have a high school diploma

Question 25

What usually does not have excise taxes levied on it?

Answer 25

non-alcoholic beverages

Question 26

What is considered a good FICO score?

Answer 26

670-739