sfl

the four ways of dealing with risk

avoid, reduce, transfer, assume

risk

the probability that something will happen that negatively affects our finances

assume method of dealing with risk

exensive, no upfront cost, but when bad event hits you spend a lot of money

transfer method of dealing with risk

insurance, when cost of emergency is high but frequency is low

premiums

monthly payment you make to have insurance

claims

request you make to insurance company to have them pay for covered things

deductable

amount you pay before insurance company jumps in to cover the cost

beneficiary

who gets your life insurance money

exclusions

specific items or conditions not covered by policy

insured

people that the policy covers

life insurance

necessary if you have any beneficiaries, should get a policy 6-10x your annual income, get quotes from 3 companies

term life insurance

the face value of the policy is paid to the beneficiary upon death, buy fixed or level term so that premiums don’t increase as you age

whole life insurance

more expensive, fixed premiums, death benefit

advantages of having health insurance

protects us against high medical costs, major medical events, preventative care, prescription drugs

copayment

fixed amount you pay for a service

maximum annual copayment

the most you’ll pay in just copayments every year

max annual out of pocket cost

most amount of money you’ll pay in a year

liability coverage

pays for damage you cause to other people/cars, not your own

medical payment coverage

pays for you, passengers medical bill, regardless of fault

uninsured motorist coverage

protects you if someome without insurance hits you

collision coverage

pays to fix your car if you hit a car/object, regardless of fault

comprehensive coverage

covers damage to car from non-collision events (theft, vandalism, fire)

no fault insurance

pays your medical bills regardless of who causes the accident

XYZ

liability insurance

how paying taxes relates to your financial stewardship

legally minimize amount paid in taxes to maximize our resources, don’t overpay unnecessarily

steps of federal income tax form

gross income, adjusted income, deductions, liability, credits, withholding, outcome

refundable credit

leftover money that gov took

non-refundable credit

money you can’t get back

scams

low risk, high reward, manipulating emotions

reasons money can be a problem in marriage

different views, money is a stress point, reflects deeper relationship issues

doctrines relating to money and marriage

becoming one, equal partnership, eliminating debt, counsel with the Lord

how to overcome financial differences with spouse

listen, joint financial goal, we not me, multiple correct ways to manage money as a family

teaching our children

parents should share financial mistakes with their children, be intentional in showing good financial behavior, provide age appropriate financial experiences