Personal Finance Final

SMART Acronym

Specific, Measurable, Action oriented, Realistic, and Time

What is a percentage is a good amount to spend on a credit card?

30%

Average amount of times a person changes jobs?

Five to seven

How do you calculate net worth?

interest x time = net worth

What is opportunity cost?

What a person gives up by making a choice

What is cash flow?

The actual inflow and outflow of money during a given period of time

Insolvency

Another name for bankruptcy

What are the difference between a debit card and a credit card?

Debit card -your spending your own money/funds. Credit card- borrowing money from the bank the that has to be payed back

Give two examples of unbanked and high-cost shadow financial services

1. Pawnshops
2. Retailer stores
3. Pay Day Loans (more options)

What is a FICO score?

A number score usually between 300 and 850 that rates how risky a borrower is (credit score)

Why should you never co-sign for a loan?

If the main signer can't make the payments on time, the co-signer will be left responsible to take on the payments.

What did the Truth in Savings law require financial institutions to disclose?

This law required financial institutions to disclose interest rates, fees on deposit accounts, and annual percentage yield (APY) and terms/conditions pertaining to the plan.

What laws determine what can be done to /a property?

Zoning laws

What is a security deposit?

Money held by landlord to cover cost of any damages done to the rental unit during lease time

Advantages of renting?

mobility, fewer responsibilities, and lower intial cost

What is closing cost?

Fees and charges paid when real estate transactions is completed; also called settlement costs

What are the 5 Cs?

Character, Capacity, Capital, Collateral, Conditions

Define an ATM?

A computer terminal used to process banking transactions; also called a cash machine

What are some danger signs of debt?

Using your savings,going over you credit limit, getting your credit card revoked, and depending on overtime money

Things to look at when buying a used car?

Check for dents, check tires, and look for leaking fluids under vehicle

How can dyou expanded a life of a vehicle?

You can change your oil regularly

What is strict liability and vicarious liability?

Sl-a person is held responsible for intentional or not Vl- person is held responsible for the actions of another person

What is are the possible waiting periods of disability?

30, 90, and 180 days

What are the parts?

Part A:hospital PartB:Medical PartC: a combination of A and B. Part D: prescription drug coverage

What is difference between actual cash value and replacement value?

ACV: pays based on the item’s depreciated value. RV: pays the full cost to repair or replace the item.

Give an example of personal property floaters?

Additional property insurance to cover the damages on items like jewelry and electronics

Why should you avoid a tax refund loan?

They carry high interest and fees

Explain the rule of 72 in your own words:

An estimate of how long it takes for your money to double.

Know what types of documents or collections are stored in safety deposit box or home filling cabinet

SDB: wills and trust, jewelry, and property deeds
FC: medical records, tax returns, and telephone service

What skills a good coworker have?

Interest in reading, ability to solve problems, organized, and good communication skills

Training may be in two main categories?

Technical and General