Financial Literacy

True or False: Just because people have nice cars, housing and other expensive things does not mean that they are good at managing money.

True

Fixed Expenses

Fixed Expenses are costs that generally stay the same over a specific period of time. Examples of Fixed Expenses are: Rent and Car Insurance.

Variable Expenses

Variable Expenses are costs that change from month to month. Examples of Variable Expenses are: Gas, Groceries, and Online Gambling.

When you are debt free except for your house mortgage, you should invest ____________ % of your gross income for retirement.

15

_________________ is a record that summarizes all of the income and spending over a certain time period.

Cash-Flow Statement

Maturity is the ability to __________________ gratification.

Deley

Personal Finance is ______% behavior and _______ % head knowledge.

80-20

Types of Debts that Americans have

student loans, car loans, and credit card debt

3 Types of Financial Goals

Short-Term, Medium-Term, and Long-Term

3 characteristics of effective Financial Goals

measurable, specific, and time sensitive

3 basic reasons to save.

Emergencies, Wealth Building, Large purchases

For adults the book recommends having $__________________ in your Emergency Fund. 

1000

3 important steps to follow while making a large purchase

Don't Fall for 0% Interest, Pay Up Front, Never Rush into a Big Purchase

True or False: In America there is no reason you can't become a Millionaire as an adult.

True

methods that credit card companies use to entice people to use their product.

Cash Back or other rewards, Zero Interest Intro rates

________________________- an asset that increases in value over time.

Appreciating Asset

A _________________ is a appreciating asset.

House

factors that are included when calculating a FICO score.

New Debt, Debt Payment History, Debt Level

In the _____________________________ you should list your debts from smallest to largest and pay off the smallest first.

Debt Snowball

The ___________________ strategy allocates money into Tax Free, Tax Deferred and Taxable Accounts.

Three Bucket

A ______________________ account is when cash is invested before taxes are taken out, then taxed later at 59 1/2 when it is withdrawn.

Tax Deferred

A _________________________ account is when cash is invested after taxes are taken out then can be withdrawn at 59 1/2 with no taxes removed from it.

Tax Free

A ______________________ is an investment fund that owns shares in many companies and can diversify an investors risk.

Mutual fund

_________________is an investment tool where you can invest tax deferred money and your contributions may be matched by your employer.

401k

A ____________________ is a legal document that outlines how a persons property and assets should be distributed after their death.

Will

A __________________- is a document that authorizes someone to act on behalf of another person, especially if they are unable to make decisions for themselves.

Power of Attorney

A ________________________ is legal document that allows an adult to specify what medical care they want or do not want if they become terminally ill or permanently unconscious and can no longer make decisions for themselves.

Living Will

A ___________________-- is a legal document that instructs healthcare providers to not perform CPR if a patient's breathing or heartbeat stops.

DNR

True or False: A DNR prohibits all medical care for a patient.

False

________________________ refers to the average cost of housing, food, clothing and any other goods you need.

Cost of Living

items that Dave lists you need to live on your own

Furniture, Security Deposit, First Month's Rent

options Dave provides to help save money when renting.

shop for used furniture and other household items, Find a roommate, Get a long term lease

Dave recommends a ____________________ mortgage for your home loan.

Fixed rate

__________________ is a tax on specific goods like beer, gasoline or cigarettes

Excise Tax

__________________ ia a major source of money for school and local governments.

Property tax

______________________income is the amount of money in your pay check after all of the withholdings and taxes are removed.

Net Income

Income tax returns are due on ___________________ of the following year for which they are filed.

April 15th

Income Tax advantages of marriage

Double Standard Deduction, Double Capital Gains exclusion for home sales, Lower tax Brackets

A _________________________ is when your taxable income is reduced.

Tax Deduction

A _________________________ is when the amount of taxes you owe the government is reduced.

Tax Credit

2 main categories of Life insurance.

Liability, Term

________________ are payments made to the insurance company to keep the policy active.

Premiums

__________________ is the money from a life insurance policy a beneficiary receives when the policy holder dies.

Death Benefit

2 Financial needs you must examine before buying Life Insurance.

Income Replacement, Debts and Liabilities

3 reasons to have car insurance.

Pay off car loan, Vehicle replacement, Ohio law

factors that can determine your insurance cost.

Age, Gender, Deductibles, Driving Record

_______________________ is a way for teenagers to reduce their car insurance premium.

Good Student Discount