Personal Finance Final Exam Review

1. Personal Finance Final Exam Review

2. Money Habit • Want • Need

3. SMART GOAL • SPECIFIC • MEASURABLE • ATTAINABLE • RELEVANT • TIME BOUND

4. Goals • Short • Medium • long • Up to three months • Three months to a year • More than a year

5. Parts of a Budget • Income • Expenses • Fixed expenses • Variable expenses • Periodic or occasional expenses • PYF

6. Decide Steps • Define your goal • Establish your criteria • Choose two to three good options • Identify the pro’s and cons’ • Decide what’s best • Evaluate the results

7. 6 steps to a winning plan • Decide the time frame for tracking your income and expenses • List your income • Use your spending log to create categories and predict amounts for each of your expenses • Subtract your total expenses from your total income • Implement the plan • Review and adjust he plan as needed.

8. Stop Drop and Think • Do I need this or do I want it? • If I don’t need it, why do I want it? • Exactly when will I use it? • Can I find it for less somewhere else? • What will I have to give up or put off by buying this now?

9. credit • 5 c’s of credit • Capital • Capacity • Character • Collateral • conditions • Triple D Approach to fraud • Deter • Detect • Defend

10. Pay Yourself First • What is it, and how does apply to concepts you learned in the 5 booklets…?

11. Items on a Paycheck • Name • Address • Hours worked • Rate of pay • Payroll deductions • Other deductions • Payroll taxes • Federal income tax • State income tax • FICA (medicare) • Local income tax

12. Investment Options Booklet 4 • Savings Account • Money Market Deposit • Certificate of Deposit • US Savings Bond • Stock • Mutual funds • Real estate • Collectibles • Start your own business • Risk tolerance

13. Education options • Associates Degree • Bachelors Degree • Masters Degree • Doctorate Degree • Benefits at a job • Health insurance • Vacation time • 401K • College reimbursement • Company discounts

14. Checking Account • Parts of a check • Name-address • Pay to the order of.. • Numerical value • Writen out value • Signature • Memo line • Bank routing number • Your account number • Bank Fees • Monthly service fee • Out of network atm fees • Check fees • Debit fees • Nonsufficient funds • Overdraft fees • Od transfer fees • Deposited item returned fee • Stop payment fees

15. Steps to Reconcile a Checking Account • Page 21 • Go through your statement and check off each transaction in your register • Jot down any bank fees you didn’t have listed in your register and subtract them from your register balance …see page 21 for the rest- booklet 5 • …see page 21 for the rest- booklet 5

16. Bank • They sell financial services.. A bank is owned by its investors, and a paid board of directors runs the bank. • Credit Union • Are not for profit organizations offering the same financial services as banks and are owned by their customers, who are called members.

17. Identify Theft • the illegal use of someone else's personal information (as a Social Security number) in order to obtain money or credit • How thieves can steal from you? (booklet 5) • Don’t trust – verify • Keep PINS total under wraps • Befriend a shredder • Protect your PC • Be skeptical of any offers • Shop securely • Surf safely in public