HDFS 454: Family Resource Management

What is resourcefulness?

The ability to identify and use resources effectively to meet needs.

What is orchestration power?

The power to make major decisions for the family unit.

What is implementation power?

The power or responsibility for day-to-day decisions and for carrying out major decisions.

What is equitable exchange?

Receiving something of comparable value to what is given.

What does the theory of relative resources say?

The partner with more resources tends to hold more power in a relationship.

What are human resources?

Resources unique to people, including cognitive and physical abilities, time, energy, effort, and behavior.

What is human capital?

A person's ability, behavior, effort, time, and energy that can be used to accomplish tasks.

Why might a person invest resources in a group?

Commitment, engagement or care, desire for excellence, and expected rewards or return on investment.

What does the S in SMART stand for?

Specific: What exactly will you do?

What does the M in SMART stand for?

Measurable: How will you know it worked?

What does the A in SMART stand for?

Achievable: Is it realistic right now?

What does the R in SMART stand for?

Relevant: Why does it matter?

What does the T in SMART stand for?

Time-bound: By when?

What are standards in resource management?

Perceptions of what quantity and quality are adequate or acceptable.

What are the four steps of the planning process?

Identify a situation that requires action; formulate a plan; implement the plan; evaluate its success or failure.

What are objectives in a plan?

Key events or specific steps plotted along the way to a goal, with tasks assigned to participants.

What is a need?

Something necessary for basic well-being or functioning.

What is a want?

Something desired but not essential.

What is the 50/30/20 budgeting guideline?

Allocate 50% of after-tax income to needs, 30% to wants, and 20% to savings and debt repayment.

How would you allocate $1,000 using 50/30/20?

$500 needs, $300 wants, $200 savings and debt repayment.

What is an asset?

Something you own that has monetary value.

What is a liability?

An amount you owe.

What is net worth?

Total assets minus total liabilities.

What is Sarah and Steve's total assets?

$227,000.

What is Sarah and Steve's total liabilities?

$125,000.

What is Sarah and Steve's net worth?

$102,000.

What is Alex's net worth in the lecture example?

Negative $1,100.

What is the difference between an expense and a liability?

An expense is money spent; a liability is a debt still owed.

What is income?

The paycheck deposited into checking.

What are fixed expenses?

Regular and predictable expenses like car payment.

What are variable expenses?

Expenses that can fluctuate, like a flu shot or coffee.

What are monetary assets?

Cash or cash equivalents.

What is a tangible asset?

An asset that has physical substance, such as collectibles.

What are short-term liabilities?

Debts due in the near future.

What are long-term liabilities?

Debts due over a longer period.

What is an income and expense report?

A record of money received and spent over a period.

What is disposable income?

Income remaining after taxes and mandatory deductions.

What is discretionary income?

Income remaining after taxes and necessary expenses.

What is a budget?

A plan for expected income, spending, and saving.

What is revolving credit?

A reusable credit limit that can be borrowed and repaid repeatedly.

What is installment credit?

A set amount borrowed and repaid over a defined period.

What is secured credit?

Credit backed by collateral.

What is unsecured credit?

Credit without pledged collateral.

Can a credit account be both secured and revolving?

Yes.

Can a credit account be both unsecured and installment?

Yes.

How does a secured credit card work?

A cash deposit backs the credit line.

What is a credit limit?

The maximum amount a lender permits a borrower to use.

What is a benefit of responsible credit use?

It can build positive credit history.

How can a credit card user avoid purchase interest?

By paying the full statement balance by its due date.

What are the three major credit bureaus?

Equifax, Experian, and TransUnion.

What do credit bureaus do?

They collect and maintain credit data reported by lenders.

What are the five factors of a FICO score?

Payment history, amounts owed, length of credit history, credit mix, new credit.

What does 'more debt' likely refer to in FICO factors?

New credit.

What is ALICE?

Asset Limited, Income Constrained, Employed.

What was Michigan's general minimum wage effective January 1, 2026?

$13.73 per hour.