Personal Finance Flashcards

Flashcards covering key concepts from a personal finance lecture, including credit, budgeting, assets, and financial planning.

What type of credit is used for specific items paid back over a specified period?

Closed end credit

In what type of credit is the title of an item held by the seller until it is paid off?

Closed end credit

What is the definition of impulse buying?

Unplanned

What type of resume highlights skills and abilities over experience?

Functional resume

What document shows the transfer of ownership of property?

A deed

What are debts owed called?

Liabilities

How do you calculate net worth?

Assets minus liabilities

What is an example of a fixed expense?

Car payments

What is an example of a variable expense?

Utility bills

What does an aptitude test measure?

What a person is naturally good at

What type of lawsuit involves many people who have suffered a similar injustice?

Class action lawsuit

Who are prime targets for credit card companies?

College students

Besides hotlines, what do government agencies often provide to assist consumers?

Education programs

Are grades normally listed on a resume?

No

What is another name for the sticker price of a car?

Suggested retail price

What do cafeteria style benefit programs allow employees to do?

Pick benefits based on their preferences

Is mediation legally binding?

No

Is arbitration legally binding?

Yes

What are the two types of continuing education?

Formal or informal

Of the 5 C's of credit, which refers to the financial ability to pay back a loan?

Capacity

What does a mentor do?

Serves as a teacher to a less experienced person

What is a major expense associated with home ownership?

Property taxes

What happens to the total cost of a loan as its length increases?

It increases

What happens to the monthly payments as the length of the loan increases?

They decrease

How does a debit card access funds?

Via a checking account

What is discretionary income?

What is left after paying for housing, food, and necessities

What is the goal of personal financial planning?

Economic satisfaction

What is consumer credit based on?

A person’s ability and willingness to pay bills when due

What is another name for a cash flow statement?

Income & expenses aka receipts & payments

What does a balance sheet list?

Assets and liabilities

What is the difference between own and owe?

Net Worth

What is a budget deficit?

When actual spending is more than planned spending

What does negotiating a home price often involve?

Offers and counter-offers

When is renting an appropriate choice?

When funds are limited

What affect does financial security have on our relationships?

Positive affect

Does credit increase purchasing power?

No

According to JAM, what is Personal Finance?

How one spends, saves and invests their money

What is opportunity cost?

Giving something up as the result of choosing an alternative

How does a financial plan compare to a budget?

Long term

Of the 5 C’s, which refers to the attitude towards credit obligations?

Character

How do debit card transactions remove money from an account?

Electronically

What calculation is used to determine a savings ratio?

Amount saved divided by gross income on a monthly basis

What is a security deposit?

A cost associated with renting

What are liquid assets?

Items that can be easily converted to cash

What happens if a CD is withdrawn early?

A penalty will be assessed

What type of companies offer loans to buy houses?

Mortgage companies

What is subletting?

To have someone take over the remaining period of the rental

What industry according to Mr. Montenaro, did he want to join?

FBI

What does it mean to buy something on credit?

Getting an item now and paying for it later

What is a credit card an example of?

Open end credit

What is an elevator speech?

Short & persuasive

How can you gain experience?

Volunteering

What is interest?

The cost of money

What are store brands?

Made for a specific retail chain of stores

What does a career normally require?

Continued training

What is the role of federal agencies in consumer education?

Provide educational programs

Do most Americans find it easy or difficult to save money?

Difficult

How long is the timeframe for short term financial goals?

Less than one year

What should a student do if they need an extension before the deadline?

Contact Mr. Montenaro

What does a personal balance sheet, aka Net Worth show?

Assets and liabilities (owe vs. own)

Where are department stores & gas companies on the list of places to get your first credit card?

A good place

What is a demand deposit?

A savings account at a credit union

Since WW II, what has been the stock market average return?

10%

What happens during a stock split?

A share owner gets more shares of stock at a lower cost

What is a stock that pays higher than normal dividends called?

Income stock

What does it mean when a stock is bought on margin?

Stock bought with a loan