Personal Finance and Consumer Skills Review Flashcards

Comprehensive flashcards covering personal finance principles, advertising tactics, employment forms, and college financial planning based on Emma Hayes' lecture notes.

What does Alexa von Tobel identify as the number one cause of stress in modern society?

Money

According to the $50/30/20$ rule, what do the percentages represent?

$50/30/20$ refers to $50\text{\%}$ for essential expenses, $30\text{\%}$ for lifestyle choices, and $20\text{\%}$ for financial priorities.

What is the recommended size for an emergency fund as mentioned in the lecture?

$3$ to $6\text{ months}$ of living expenses.

Why is debt reduction considered a defensive financial strategy in the current market?

It reduces risks such as increased interest expenses, limited financial flexibility, and the potential for bankruptcy.

According to the J.P. Morgan 2023 forecast, what was the expected annual return for a $60/40$ stock-bond portfolio?

$$7.20\text{\%}$$

What is the dark pattern known as the Roach Motel?

A user interface design that makes it easy to get into a situation but hard to get out of.

How is the dark pattern Confirmshaming defined?

Emotionally manipulating someone into opting into something by phrasing the no button in a guilty or insulting way.

What is the difference between a college's sticker price and its net price?

The sticker price is the posted cost of attendance, while the net price is the actual cost paid after subtracting grants and scholarships.

What is the purpose of the Form $W-4$?

It tells an employer how much federal income tax to withhold from an employee's paycheck.

Which form is used to verify an individual's identity and eligibility to work in the US?

Form $I-9$

What are the form numbers for federal and state tax returns as noted in the lecture?

$1040$ for federal and $TC-40$ for state.

What is the primary difference between a subsidized and an unsubsidized student loan?

In a subsidized loan, no interest is charged until repayment begins; in an unsubsidized loan, interest accumulates as soon as the loan is taken out.

What is the main cause of inflation?

An increase in demand without a corresponding increase in supply.

What does the color red represent or stimulate in advertising psychology?

It increases blood pressure, heart rate, and appetite, and stimulates quick decision-making.

Define the economic concept of Laissez-Faire.

A policy or attitude of the government letting things take their own course without interference, literally meaning hands off.

What are the three criteria a product must meet to be eligible for price matching at Target?

The product must be an eligible Target product, bought within the past $14\text{ days}$, and be an identical item to the competitor's.

Which source of income is defined as a fixed, regular payment to an unskilled worker?

Wages

What is the FAFSA, and when is the earliest it can be submitted?

Free Application for Federal Student Aid; it can be submitted as early as October of a student's senior year.

How do rising interest rates affect individuals differently than businesses?

Individuals face higher monthly payments for mortgages and credit cards, while businesses face increased capital costs for operations and investments.

What is commission in the context of income?

A service charge assessed by someone performing a service for you.