Week 2

Question 0

Fixed expense

Answer 0

Rent/house payment/car payment/ food, utilities…the things that you know you must pay every month

Question 1

Cash flow statement

Answer 1

Use this when creating a budget, it helps you record your income and expenses

Question 2

Emergency fund

Answer 2

Set aside money in case of an emergency

Question 3

Values

Answer 3

Vary from those of others and influence your financial decisions

Question 4

Inflation

Answer 4

The general rise in prices

Question 5

Liquidity

Answer 5

How easy it is to get your cash

Ease of turning assets into cash, a reg. savings account has high l, while others have a lower liquidity

Question 6

Interest

Answer 6

is the income earned by the lending of a sum of money, earning money- your money gains interest while sitting in the bank

Question 7

Reconciling

Answer 7

Going through your checkbook and bank statements making sure they match up

Question 8

Income

Answer 8

Any money coming in, could be fixed or variable

Question 9

Discretionary income

Answer 9

Money left over from your income spending on savings and fixed expenses. Pleasure spending

Question 10

Certificate of deposit (cd)

Answer 10

A certificate issued by a bank to a person depositing money for a specified length of time.

Question 11

Money market accounts

Answer 11

Kind of savings account that is a financial account that pays interest based on current interest rates in the money markets

Question 12

Savings bonds

Answer 12

Ways of saving money in the long run. You buy a $100 bond for $50 and overtime the govt bond will mature

Question 13

Compounding interest

Answer 13

What we did yesterday. Way of calculating interest done annually, semiannually, quarterly, or even monthly.

Question 14

NSF fee

Answer 14

Non-sufficient funds is a term used in the banking industry to indicate that a demand for payment cannot be honored because insufficient funds are available in the account

Question 15

Variable expense

Answer 15

Expenses that were for pleasure or even unexpected, car repairs, medical expenses, entertainment, dates, unexpected emergencies

Question 16

Credit union

Answer 16

Non for profit organization with members, career focused, like a teachers credit union.-has no accounts and each member partially owns it

Question 17

Know differences between short, medium, and long term goals.

Answer 17

Short- up to five years
Medium- 5-10 years
Long- 10 or more

Question 18

Know difference between a debit and credit card.

Answer 18

Debit- checking account that immediately withdrawals money.

Credit- borrows money from the credit card company and is agreeing to pay it back

Question 19

Know difference between a checking and savings account.

Answer 19

Checking- usually doesn’t make interest, write checks and keep a checkbook
Saving- gains interest, put $in using a deposit slip and take it out with a withdrawal slip.

Question 20

Know difference between a w2 form and a W4 form…

Answer 20

W4- withholding, the more withholdings, e less the govt takes
W2- wage and tax statement

Question 21

What regulates the banking industry

Answer 21

State and federal organizations- FDIC

Question 22

What improves your savings power?

Answer 22

Don’t touch the money, no withdrawals, and you have a choice of your savings

Question 23

Know how to help prevent your bank info from being stolen.

Answer 23

Use secure sites, don’t use hotspots or free wifi to send personal info.
Have registration and PIN numbers
Convenient money transfers
Bill pay feature

Question 24

What types of additional charges are associated with writing a bad check?

Answer 24

Missing checks aka outstanding checks

Question 25

Difference between commercial banks and credit unions?

Answer 25

Commercial- for profit banks, provide accounts, more of your standard bank
Credit union- based around a profession has “members” part-owners and non for profit

Question 26

What is service learning, altruism, and philanthropy?

All under sharing

Answer 26

• Service-Learning is a teaching and learning strategy that integrates meaningful community service with instruction and reflection to enrich the experience
• The belief in or practice of disinterested and selfless concern for the well-being of others.
• does not always contain money givingp

Question 27

Economically speaking, what do we mean by the term, return?

Answer 27

The actual amount of interest earned from an account

Question 28

Goal chart

Answer 28

Help keeps your tasks on hand and helps you on your way to achieving them