Consumer Smarts Post test review Flashcards
You got a raise! What should you do first?
-Partaaaaaaaaay!
-Pay off your past due bills.
-Adjust your budget to reflect the new amount.
-Stick all of it in your savings account so you’re not tempted to spend it.
Adjust your budget to reflect the new amount.
What’s the best approach to making big spending decisions?
-The cheapest choice is always the best.
-The most expensive choice is always the best.
-You need to weigh the pros and cons and choose whatever comes out on top.
-You need to consider your budget first and weigh your options after.
-You need to consider your budget first and weigh your options after.
Let’s say you blow your budget on a fancy shmancy car… What next?
-Get rid of it! What were you thinking?!
-Take a look at your budget and see where you can cut back; maybe it can work.
-Reassess your savings goals and scale back so you can afford the car
-Any of the options above can work. But, be aware of what you lose in order to keep the car.
-Any of the options above can work. But, be aware of what you lose in order to keep the car.
What does the term “pay yourself first” mean?
-Assess your saving goals and make sure you put a percentage of your earnings toward those goals.
-Writing yourself a check for spending money every time you get a paycheck.
-Put money in your checking account first so you have enough on hand to pay your bills.
-None of the above.
-Assess your saving goals and make sure you put a percentage of your earnings toward those goals.
Define Claim
A request to your insurance company to pay for healthcare that you’ve already received.
Ex: After your doctor put a cast on your broken arm, you submitted a claim so you didn’t have to sell your kidney to pay for it.
Define Lease
A contract that allows you to borrow someone’s property for a specified amount of time and money.
Ex: The lease on your apartment says you owe your landlord $600 and a plate of cookies on the first of every month.
Define Tax
An amount paid to the federal or state government to pay for services and programs. Taxes are compulsory, which means everyone has to pay them.
Ex: The taxes that came out of Jennica’s paycheck helped pay for the road that she drove on to get to work, so she couldn’t complain.
What is the purpose of insurance?
-It’s a service that covers accidents and unplanned expenses 100 percent.
-It’s an amount you pay to protect yourself from some of the costs of accidents and emergencies.
-It’s an optional add-on when buying, registering, and driving a car.
-It’s an amount you pay to protect yourself from some of the costs of accidents and emergencies.
What happens if you don’t have insurance on your big-ticket items?
-You’re on the hook for 100 percent of the costs in case of an accident or emergency.
-You could find yourself in legal trouble, like in the case of auto insurance.
-You might not be able to afford the replacement of things that are damaged or stolen.
-All of the above.
-All of the above.
What’s a deductible?
-The amount you’ll need to pay per claim before insurance kicks in and covers the rest of your costs.
-Your monthly insurance payment.
-The amount of money you can ask for on an insurance claim.
-The part of your policy that covers damage that you cause to other drivers in an accident.
-The amount you’ll need to pay per claim before insurance kicks in and covers the rest of your costs.
