Personal Finance Final Exam Review

Personal Finance Final Exam Review

Money Habit Want Need

SMART GOAL SPECIFIC MEASURABLE ATTAINABLE RELEVANT TIME BOUND

Goals Short Medium long

Up to three months

Three months to a year

More than a year

Parts of a Budget Income Expenses

Fixed expenses Variable expenses Periodic or

occasional expenses

PYF

Decide Steps1. Define your goal2. Establish your

criteria3. Choose two to

three good options4. Identify the pro’s

and cons’5. Decide what’s best6. Evaluate the results

6 steps to a winning plan1. Decide the time frame for

tracking your income and expenses

2. List your income3. Use your spending log to

create categories and predict amounts for each of your expenses

4. Subtract your total expenses from your total income

5. Implement the plan6. Review and adjust he plan as

needed.

Stop Drop and Think Do I need this or do I

want it? If I don’t need it, why do

I want it? Exactly when will I use

it? Can I find it for less

somewhere else? What will I have to give

up or put off by buying this now?

credit 5 c’s of credit1. Capital2. Capacity3. Character4. Collateral5. conditions

Triple D Approach to fraud

Deter Detect Defend

Pay Yourself First What is it, and

how does apply to concepts you learned in the 5 booklets…?

Items on a Paycheck

Name Address Hours worked Rate of pay Payroll deductions Other deductions

Payroll taxes Federal income

tax State income tax FICA (medicare) Local income tax

Investment Options Booklet 4 Savings Account Money Market Deposit Certificate of Deposit US Savings Bond Stock Mutual funds Real estate Collectibles Start your own business

Risk tolerance

Education options Associates Degree Bachelors Degree Masters Degree Doctorate Degree

Benefits at a job Health insurance Vacation time 401K College

reimbursement Company

discounts

Checking Account Parts of a check Name-address Pay to the order of.. Numerical value Writen out value Signature Memo line Bank routing number Your account number

Bank Fees Monthly service fee Out of network atm fees Check fees Debit fees Nonsufficient funds Overdraft fees Od transfer fees Deposited item returned

fee Stop payment fees

Steps to Reconcile a Checking Account Page 21

1. Go through your statement and check off each transaction in your register

2. Jot down any bank fees you didn’t have listed in your register and subtract them from your register balance

…see page 21 for the rest- booklet 5

…see page 21 for the rest- booklet 5

Bank They sell financial

services.. A bank is owned by its investors, and a paid board of directors runs the bank.

Credit Union Are not for profit

organizations offering the same financial services as banks and are owned by their customers, who are called members.

Identify Theft the illegal use of

someone else's personal information (as a Social Security number) in order to obtain money or credit

How thieves can steal from you? (booklet 5)

1. Don’t trust – verify2. Keep PINS total under

wraps3. Befriend a shredder4. Protect your PC5. Be skeptical of any

offers6. Shop securely7. Surf safely in public