statistically, what is the number one reason for declaring bankruptcy?
an uninsured catastrophic healthy program
which items can help you when you categorize your expenses?
-checkbook register-store receipts-monthly credit card statement-online checking account statement*everything except ATM receipt and savings account*
what events may switch you to a Default APR-- typically the highest interest rate a credit card issuer may charge by law?
-failure to make minimum payment-a payment made late by just one day-any of the other events, even on a card from another issuer-attempting to charge more than the card's limit
what happens if you pay the the minimum on your credit card bill rather than paying the balance in full?
you pay more to cover your debts due to interest, and it takes much longer
DVDs and restaurant dinners are examples of:
-wants-discretionary purchases
What does a 401k plan do?
it helps you save money for retirement
the best way to pay your credit card bill is to pay with:
a personal check
True or False: When you file for bankruptcy you are no longer responsible for paying anything you owe
False
Each month, you should "pay yourself first" by __________________.
putting money into savings, mutual fund, or a retirement account
It takes a long time to pay off a credit cad debt by paying just the minimum due, bc payments are applied to __________________.
the interest first, then the principal
When paying your bills, it is most financially beneficial to make larger payments to:
the debt with the highest interest rate
Which of the following actions might TEMPORARILY negatively affect your credit score?
-getting a loan-paying a credit card bill after the due date-opening another credit card account-missing a credit card payment
How often should you routinely monitor your credit report?
every 4 months
A reputable credit counseling service will
-keep your information confidential -be on the Federal and State approved list
Which purchase will cause the buyer to pay ongoing expenses?
-a laptop-a cellphone
Kadeem calculates that he is paying over $200 each year in check-cashing fees. Which is Kadeem's best option for saving the fee?
opening a banking account
Amir wants to open a checking account that will pay interest. What is typically true of interest-bearing checking accounts?
they have higher minimum balance requirements
Which of the following should you include when calculating your liabilities?
money you owe
Why would someone want to keep track of his or her net cash flow?
-to identify opportunities to save-to make sure income is larger than expenses
It is important to reconcile your checking account every month bc:
-it may alert you that your financial identity has been stolen-you may find our your bank has made an error -you may discover fees being charged to your account that you didn't know about-you may see opportunities to improve your budgeting-it helps you find errors you may have made in your register*all options except that the bank requires you to so so*
Which of the following payment methods does NOT take money immediately from your checking account?
writing a check
What is the MOST IMPORTANT thing you can do now to improve your net work 10 years from now?
regularly deposit money into a savings or investment account and don't take it out
Which are components of the "true cost" of a car?
-parking-car insurance-gas-repairs-the down payment
True or False: investing money always involves some risk.
True
True or False: You may be charged multiple fees for using an ATM that is not associated with your bank.
True
One problem with house debt is that the lender can take over ownership of your property if:
You fall behind in your mortgage payments
Even if you cannot afford to put money into a savings account, which of the following can you do to save money?
-cancel magazine subscriptions-walk more and drive less -turn off the lights when you leave the room*all except dine out*
Why would someone get a joint checking account?
to share the account with someone else
What is a bond?
A loan made to a corporation or government
What is the value of having mutual funds in your investment portfolio?
Mutual funds by stocks of many companies, so your portfolio may be less vulnerable to the ups and downs of the stock market.
Which of the following should NOT be included in your long term savings plan?
clothing
Which of the following expenses are considered fixed expenses?
-rent-car payment
Shauna wants to estimate what her net worth will be from 5 years from now. Which of the following tasks is/are involved in calculating Shauna's future net worth?
-estimate her projected total assets including all bank accounts, property, and investments -estimate her projected total liabilities, including all debts and loans-subtract her projected liabilities from her projected assets
Which of the following should you of if you fund an error in your credit report card?
write a letter to the credit reporting agency telling them which items are wrong and why
Which of the following statements accurately describe(s) a W2 form?
-it is sent to you by each of your employers-it lists the total amount of money you earned at your job during the year-it lists the total amount of taxes taken out that year
Jenny just graduated from college and will not qualify for health insurance at her new job for 90 days. Which of Jenny's options has the least financial risk?
buying interim insurance
Which institutions may access your credit score
(all of the options)-landlords-mortgage lenders-prospective employers-credit card issuers-background investigators
Which of the following statements is/are true of U.S. Personal Income Taxes?
-Taxpayers receive tax credits fro some government-approved expenses-taxes are based on income level and marital status -almost all income earners must pay some tax
Which of the following contribute(s) to your credit history, and therefore to your credit score?
-your student loans-your credit cards-your mortgages
Which of the following activities will result in a banking fee?
-overdrawing your account-getting a cashiers check
When you make a purchase with your credit card, you are __________ money from ___________.
Borrowing; the bank
Which factors could help to raise your credit score?
-Paying more than the minimum amount on your credit cards on time-Paying off a loan
Which of the following is most likely to be an example of "bad" debts?
credit card debt
Why is it important to you to establish credit history and become "credit-worthy"?
to get a lower interest rate when you borrow money
Which of the following is true about SALES TAX?
it makes things more expensive for you to buy
Which of the following should NOT be a consideration when planning for your retirement?
the value of your possessions
Which of the following is most likely to produce the most money over the course of your career?
Get a Bachelor's degree and go to work
Which of the following will help you keep your personal information secure?
Instaling spyware detection software on your computer
What should you do with your bank statements?
-Review them to identify and and budget for fees-Review them to identify improvements you could make to your spending habits-reconcile them with your records/register-keep them in a safe file for at least a year before shredding
It is important to know the minimum and maximum expenses of each variable expense because __________.
(all of the options)-then you can plan for the variances over a year-long period-then an increase in the expense can still be accommodated in your spending plan-then you know the "worst case" for that expense-then you can use the average as the usual amount in your spending plan