Personal Finance Exam Part 1 Flashcards
Follow-Up
Contact with a prospective employer after the interview. Send within 24-48 hrs after interview.
Occupational Outlook Handbook
A good place to start job market research. Can learn the latest about jobs in a wide range of fields.
Recession
People slow their buying and unable to pay high prices; jobs lost.
Recovery
Economy is growing, people are spending because they are optimistic, good time to save money.
Scarcity
The study of economics. Which occurs because people’s needs and wants are unlimited, while resources are limited.
Job Shadowing
Spending time observing a worker in a type of job that interests you
Social Network
A group of friends and acquaintances who keep in contact and share information.
Values
A principle that reflects the worth you place on an idea or action
1040EZ
A tax return for filers with no dependents or itemized deductions
1.5
Overtime rate - 1 1/2 times regular pay
Benefits
Forms of pay other than salary or wages
Examples: holidays, education (tuition reimbursement), perks, retirement plans, profit sharing plans (bonuses), stock option plans
Business Plan
A document that describes the steps that will be taken to open and operate a business
Examples: funding, location, insurance, employees, benefits for employees
Dependent
A person who depends on you for more than half of his or her support
Entrepreneur
Someone who is self-employed and owns a business.
- -> lifestyle business (small) good income
- -> venture business (growth) goal is to become a corporation
Profit-Sharing
A benefit whereby employees may share in the profits of the business.
Regressive Taxes
Take a larger percentage of income from lower-income people than from higher-income people
Examples: Sales Taxes
Ethics
A set of moral values that people consider acceptable
Advertising
Informing consumers about products and encouraging them to buy
Banner Ads
Ads that are on the page (ads that you can’t close)
Customer Loyalty
Program designed to encourage a customer’s repeat business
Examples : Casey’s Pizza, Kohl’s Cash
Demand-Pull Inflation
Higher prices, consumers want to buy more than producers can supply
Food and Drug Administration
Enforces laws and prevents or stops the selling of mislabeled foods, drugs, cosmetics, and medical devices
Infomercial
Paid TV ad that includes testimonials, demonstrations, and introductory prices
Low-Balling
Advertising a basic service at a low price and then claiming additional repairs or services are needed. Way of deception.
Productivity
Measure of the efficiency with which goods and services are made
Time-Shifting
Recording video or audio for later viewing or listening
Time Value of Money
A concept that says a dollar you receive in the future will be worth less than a dollar you receive today.
Appreciating
Assets that are growing in value (investments, house)
Assets
Money or items of value (car, house)
Budget
Spending and saving plan
Buyer’s Remorse
Someone regretting a purchase they had made
Delayed Gratification
Doing without an item you would like to buy now in order to save money to fulfill a medium or long term goal
Encryption
Process of converting data to a coded form
Financial Plan
Plan with personal and financial goals along with steps and a timeline
Financial Resources
Are used to acquire wants and needs
Firewall
Software or a hardware device that filters information coming into your computer
Net Worth
The difference between assets and liabilities
Philanthropy
Form of charitable giving
Examples : money, time, personal resources
Timeline
A visual display of how long it will take to achieve each phase of a plan
Proverbs 12:11
Those who work their land will have abundant food, but those who chase fantasies have no sense.
Proverbs 14:23
All hard work brings a profit, but mere talk leads only to poverty.
Proverbs 15:22
Plans fail for lack of counsel, but with many advisers they succeed.
Romans 13:7
Give to everyone what you owe them: If you owe taxes, pay taxes; if revenue, then revenue; if respect, then respect; if honor, then honor.
Matthew 16:26
What good will it be for someone to gain the whole world, yet forfeit their soul? Or what can anyone give in exchange for their soul?
Luke 12:15
Then he said to them, “Watch out! Be on your guard against all kinds of greed; life does not consist in an abundance of possessions.”
Ecclesiastes 11:6
Sow your seed in the morning, and at evening let your hands not be idle, for you do not know which will succeed, whether this or that, or whether both will do equally well.
