Marriage and Family State Test Flashcards
what is financial planning
setting goals and developing a plan for finances
financial institutions
bank, credit unions and savings and loan firms
what are FDIC, SAIF, and NCUA
insurance for banks, credit unions and savings and loan
what are ooutstanding checks
checks that havent cleared the bank
what is overdraft protection
an instant loan that guarantees checks up to a specified amount
debit vs. credit card
debit card transactions are deducted out of checking, credit cards are loans
what is the cost of credit
the interest you pay to use other’s money
what is a credit limit
the max amount you can borrow
what does APR stand for
annual percentage rate
credit history/credit report
a record of your personal financial transactions used to determine risk. kept by credit bureaus
what is bankruptcy
two types: chapter 7 and chapter 13
what is the Fair Credit Reporting Act
law that says you can see your credit report and dispute anything that is false
what is interest
the amount you pay for the money you borrow
what is the principle loan amount
the original amount you borrow
what is a cosigner
a person who accepts responsibility to pay the loan if you default
what is a flexible expense
expenses that change from month to month
ex. groceries, recreaction
fixed expense
expenses that stay the same every month
review and revise or update your budget
update and make changes to spending plan as needed
recommended percentages for budgeting household expenses
housing 30-35%
food 10-15%
savings 10%
transportation 15%
savings
money set aside for emergencies or short term needs
PYF
pay yourself first 10% before anything else
emergence funds
money saved that is easily accessible in case of an emergency
3 major taxes
federal
state
local- property and sales
1040EZ
easiest tax form to do
compounding interest
earning interests on interest
principleinterestinterest
rule of 72
how long it takes to double your money
72/the interest=how long it takes to double
interest
percentage charged to borrow money. (higher rate=more cost)
risk and return principle
the higher the investment risk the higheer the investment return
stocks
you have part ownership in a company
liquidity
an asset that can be easily converted into cash
mutual funds
and investment security that is a diversified portfolio
diversification
reducing investment risk by putting money in several different types of investments
retirement
when you live off your pension and your savings
IRA
individual retirement account
what is estate planning
a plan to use wills and trusts to distribute assets
purpose of a honeymoon
to get to know each other, to provide relaxation, time alone together and time to adjust to marriage
purpose of engagement
showing commitment, plan wedding, and making sure it is the right person
marital roles: traditional vs. equalitarian
roles in a marriage are defined as masculine and feminine vs. roles are divided up equally
marital risks
getting married too young, unhappy childhood, different values, parents are divorced, parents disprove, emotionally or physically unhealthy
discussing finances in marriage
finances are the #1 cause of divorce
communication in marriage
focus on positive, constructive communication
touch oriented person
enjoys hugging, holding hands, and physical closeness
verbally oriented person
enjoys physical closeness, sharing feelings, and heart to heart conversations
task oriented person
want achievements recognized, want things, value hard work
conflict resolution
use communication to solve problems and compromise and accommodate each others needs
5 stages of grief
- denial
- anger
- bargaining
- depression
- acceptance and recovery
strengthen families
- commitment
- time together
- sharing values
- appreciating one another
- decision making
- share responsibility/chores
- problem solving
homeowners insurance
replacement value. protects home and loss in house
liability insurance (auto)
pays for your car to get fixed
