financial Lit Semester Review Flashcards
someone who is famous in an app and posts something and people follow them
social media influencer
getting other people to do something, (jump on the wagon)
Bandwagon
the more of an item you acquire, the less useful or enjoyable it becomes
Diminishing marginal utility
How does situational context and values influence your decisions?
In a situation like the desert, the water was more important than the diamonds, you first figure out the situation you are in and then think of your values at the time
Where does the money come from when you use your debit card?
It comes from your checking account
Jocelyn gets a text alert from the bank that her account balance has dropped below $100 after a series of $20 ATM withdrawals. She has not used her ATM in over a week and wonders what she should do. What would you recommend?
Contact your bank immediately as it appears that your account may have been hacked
List ways to access the money in your checking account.
debit card, going to the bank, ATM
What is FDIC insurance?
If you have under 250,000 your money can be reimbursed, Protects bank depositors against the loss of their insured deposits
What is the largest source of fees for banks when it comes to checking accounts?
overdraft fees
What is a person to person payment app? In what situations might it be used?
A person to person payment is when you only pay to one other person and not a bank or corporation. Mia’s friends send her the money they owe for the pizza she bought.
Direct deposit typically refers to your employer sending your bills electronically to your bank account. T or F
true
Eliminating late fees is an advantage of paying your bills using online bill pay feature with your checking account. T or F
true
Checking cashing stores typically cost less than using a checking account at a traditional bank. T or F
false
Your friend says it’s a bad idea to have a checking account because of all the fees. Make a persuasive argument about the benefits of having a checking account.
Your money is protected in the bank, the fees are a low amount, don’t overspend and the fees stay low
- What is the difference between saving and investing?
Saving→ Its long term, money not used often, usually saved every month
Investing→ short term, money goes to making more money
Experts recommend that you accumulate enough to cover 3 to 6 ________ of expenses in your emergency fund.
Months
Fill in the blanks with the correct responses. If you follow the 50-20-30 rule of budgeting, you’ll be putting 50% of your monthly income toward _________, 20% of your monthly income toward _________, and 30% of your monthly income toward ________.
Needs, Savings, Wants
You are developing a savings plan and using short-, medium-, and long-term goals to motivate you. What is an example of each type of goal?
Short→ computer → 2 months
Medium→ college → 2 months to 3 years
Long→ house → 3 years +
when should you start saving for retirement?
in your 20’s
What is inflation and how does it impact savings?
Infalstions is the rate of increase in prices
Prices can increase because there is more demand compared to the supply
You are starting your first job and you are asked to complete some paperwork on your first day. Which form will determine how much money is withheld from your paycheck for federal and state income taxes?
W-4
Which of the following paycheck withholdings puts money into a retirement investment fund that you will manage?
401(k) contribution
What form am I? I am received when you start a job. You use me to prove that you are eligible to work in the U.S., and you must provide forms of identification when submitting me.
I-9
When you complete your 1040 form, if you overpaid your taxes and the government owes you money, that is called a __________.
refund
What tax form am I? I am received in January. There is one of me for every employer that you worked for in the previous year. I have information on how much you earned and how much you paid in taxes for the previous calendar year.
W-2
What tax form am I? I am the official form that U.S. taxpayers use to file their annual income tax return in the spring.
1040
