Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

DECA > PFL: Spending and Saving > Flashcards

PFL: Spending and Saving Flashcards

1
Q

Decide uses for personal

funds

A

g

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Predict possible spending
decisions in advance of a
family trip or other special
occasion.

A
  • eat out or bring food in a cooler/non-perishables
  • where to buy gas - get an app to find the cheapest
  • where to stay: hotel, motel, car, etc.
  • buying souvenirs or not
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Show how to add money to
and withdraw money from a
personal account in a bank
or credit union.

A

deposit: ATM, counter, or transfer funds online
withdraw: all above, plus cash a cheque

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Differentiate between
private and public
property.

A

public: owned by state/gov
private: owned by an individual/organization

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Calculate the sales tax for

a given purchase.

A

Ontario: HST = 13%

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Give an example of how
government uses tax
revenues.

A

(USA)
mandatory: Medicare, Social Security, veterans benefits, transportation, etc
discretionary: military, housing, education, etc
…the rest goes to pay off gov debts

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Compare saving strategies,
including “Pay Yourself
First” and comparison
shopping.

A

pay yourself first: the first part of your paycheck should automatically go into savings

comparison shop

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Compare the advantages
and disadvantages of
saving for financial goals.

A

adv: closer to fin goals
dis: less money for spending, less money for investing

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Illustrate how inflation can
affect spending power over
time.

A

inflation reduces purchasing power over time by increasing the prices of many goods and services

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Explain why saving is a

prerequisite to investing.

A

you cannot invest money that you need for basic necessities, because you need that money immediately, and cannot risk losing it. you can only invest discretionary income (the money left over after paying for necessities). note diff. from disposable income, which is money left after paying tax

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Use a plan to manage
spending and achieve
financial goals.

A

how to create a spending plan:

  1. identify all sources of income
  2. list all expenses
  3. subtract expenses from income to see how much is left
  4. set priorities and make changes - allocate that surplus to savings (to accomplish a fin goal). if you were in the negative, cut back on your expenses, increase income, or both
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Specify how monetary and
non-monetary assets can
contribute to net worth.

A

net worth = assets - liabilities
assets can include monetary assets (like money or bonds), and non-monetary assets (like a house, copyrights, patents, inventories, etc.)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Investigate account
management services
that financial institutions
provide.

A
  • online banking
  • talking to a fin advisor
  • reorder cheques
  • address change
  • overdraft protection (covers occasional shortfall in money)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Differentiate between
an expense that is tax
deductible and one that
is not.

A

tax deductibles:

  • charity
  • home loan interest
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Investigate the records
required to claim possible
tax credits.

A
  • receipts
  • income statement
  • donation receipts
  • children’s education
  • benefits records
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Justify reasons to keep
money in a bank or credit
union.

A

banking is safer, puts your money to good use (fractional reserve system), and you can earn interest (%)

17
Q

Compare and contrast
different types of local
financial institutions and
the services they provide

A

credit union: a place you can pool your money with others so you can take out loans on low interest rates

check cashing services: you forefeit check to them, and they give money. can charge 3-5% per check

18
Q 
Summarize the advantages
and disadvantages of
checks, stored value cards,
debit cards, gift cards
and online and mobile
payment systems
A

check

adv: secure, cannot be cashed at an unsecure location, only person who it is signed to can cash it
dis: wait for bank to open, there is a specific date when you can, you need a bank account

stored value

adv: used in credit card only scenarios, control cost/expenses
dis: high fees, like cash (you can lose it easily, can’t get back)

debit card

adv: convenient, takes less time to purchase, keeps you within budget, easier to get than credit card
dis: some banks charge extra fees, disputed charges more difficult to resolve, don’t improve credit score

gift card

adv: save time, convenient
dis: expire, some have fees (esp. ones from banks), company goes out of business = lose money, like cash

19
Q 
Summarize the risks and
protections of checks,
stored value cards, debit
cards, gift cards and online
and mobile payment
systems.
A

credit card

protection: not carrying money
risk: theft or fraud

debit

protection: PIN
risk: theft, whole account at risk

20
Q 
Compare the costs of
cashing a check with
various third parties, such
as a bank or credit union,
check-cashing services and
retail outlets.
A

check cashing services charge 3-5% for a check

canadian bank must cash checks for free

21
Q

Reconcile a checking

account.

A

go through each payment on account statement and verify that it matches your own records

22
Q

Demonstrate how to use
comparison shopping skills
to buy and finance a car.

A

use comparison shopping to buy a car: go to multiple dealerships, compare prices for the same models

23
Q

Compare the advantages
and disadvantages of
owning a house versus
renting.

A

own

  • tax benefits
  • free to paint or remodel
  • build equity (value of mortgaged item after deduction of charges against it)
  • payment stays same

rent:
- no maintenance required
- easy to move
- houses are a depreciating asset
- payments can rise

24
Q 
Research the average costs
of all expenses associated
with a four-year college
education, a wedding and
a new versus used car.
A

4 year college education

  • tuition: 10-30 thousand
  • Clothing: $500-$1,000
  • Food: $500-$1,000
  • Gas/Car Insurance: $1,200-$3,000
  • Books and school supplies: $400-$1,200
  • Electronics: $200-$1,200
  • Travel (amount dependent on how far away from home you go): $100-$1,000

wedding

  • food, alcohol, venue: $18 000
  • gown: $4000
  • photography: $300-500
  • ceremony: $1000

new car average
- $30 000

used car average
- $15 000

25
Q 
Research the average costs
of all expenses associated
with a four-year college
education, a wedding and
a new versus used car.
A

k

DECA (8 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions