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75 Cards in this Set
- Front
- Back
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What are the advantages of budgeting? |
Increase savings, reduce impulse buying, less friction in relationships |
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What do we call it when you see something you hadn't planned on buying but you buy it anyway? |
Impulse buying |
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What do we call a person who spends foolishly wasting their money? |
Spendthrift |
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Who is most likely to benefit financially from having to work extra hours to complete a job? |
Blue collar; get paid hourly |
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What is the difference between a debit card and a credit card? |
Debit is linked to checking account; credit card is linked to a line of credit |
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What is the advantage of loan consolidation? |
Consolidate into one monthly payment, smaller payment, amount of interest reduces |
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What is equity? |
Difference between value of item and what you owe on it |
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What do we call the person with established credit that will sign a loan with you to help you establish credit? |
Co-signer |
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What do we call a one room apartment with a bathroom and small kitchen? |
Studio or efficiency apartment |
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What is another word for a renter? |
tenant |
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Which type of housing has common ownership of grounds and recreational facilities, but private ownership of each housing unit? |
condominium |
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What do we call a home that is built in sections and assembled on the location where the home will rest? |
pre-fabricated or modular |
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What is the cheapest type of housing arrangement per square foot? |
mobile home |
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What do we call a written agreement between the landlord and the renter that contains the monthly rent and conditions of renting the apartment? |
lease |
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Which type of housing arrangement gives the household their greatest number of housing options and is the best short-term solution to housing? |
renting |
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What are the advantages and disadvantages of renting an apartment or house? |
Advantages: Less start-up cash, flexibility to move, no upkeep or maintenance, amenities, renting a house = larger space Disadvantages: no equity, can't make changes to the structure, difficulty with landlord, could be noisy |
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What are the advantages and disadvantages of renting an apartment or house? |
Advantages: make changes to it, privacy, equity can deduct interest from taxes, good investment against inflation. Disadvantages: Large down payment, can't easily move, have to do all the upkeep, unstable housing market |
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What is an ARM and what is the major factor in determining the rate? |
Adjustable rate mortgage: means interest rate can change; prime rate determines interest rate |
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What do we call a loan to buy a home? |
mortgage |
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What do we call it when the bank takes your house from you for not making payments? |
Foreclosure |
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What is mass transportation? |
Bus, subway, etc |
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What type of car is the cheapest priced cars sold in the United States and are usually best in terms of gas mileage? |
compact, subcompact car |
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What do we call the guarantee to fix your car or product you bought for a certain period of time if it is defective? |
Warranty |
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What are the advantages of buying a new car versus a used car? |
Better condition, build up equity, have a longer warranty |
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What are some hints for buying a new car? |
Never pay sticker price, don't be in a hurry to buy a car, make an offer you can afford, research the car |
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What are the advantages and disadvantages of leasing a car? |
Advantage: can trade often, maintenance is paid for. Disadvantage: limited mileage, no equity |
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What are the suggestions given in Chapter 17 for buying a used car? |
Research the car's history, find the value, consider having a mechanic look at it |
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What are durable goods? |
Furniture, appliances |
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What do we call the practice of intentionally luring customers into the store with a low advertised price on a good but not having it in stock and then get the customer to buy a more expensive good? |
Bait and switch |
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What are the suggestions for shopping online? |
Make sure the company is reputable, make sure the site is secure, take into consideration the amount of shipping and handling |
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What are the four types of food stores mentioned in Chapter 17? |
Convenience, market, supermarket, cooperative |
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Which type of food store is generally the most expensive? |
Convenience |
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What are the tips given for shopping for food in Chapter 17? |
Don't shop while you're hungry, comparison shop |
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What is the difference between a national name brand, a private brand and a generic brand? |
Generic: cheaper |
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What do we use unit price for? |
Comparing one size of a product to another |
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What is direct marketing? |
Using telephone, email or mail to sell directly to a customer |
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What is one way to help avoid telemarketing calls listed in Chapter 17? |
Don't answer the phone, ask to be placed on the no call list |
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What are the four types of insurance covered in Chapter 18? |
Auto, life, health, homeowners |
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What do we call the person who receives the benefits from your life insurance policy? |
Beneficiary |
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When is the most important time for you to carry life insurance? |
when you have dependents |
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What type of life insurance is also an investment? |
Whole life insurance |
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What is the difference between term and whole life insurance? |
Term life: can carry it periodically whole life: is a bigger investment |
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What do we call prescription drugs that are produced by companies other than the original manufacturer and are generally cheaper? |
Generic |
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What do we call the amount of money you have to pay out of your pocket before the insurance company pays for your prescription? |
co-pay, deductible |
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What do we call the amount you have to pay of your doctor bill before your insurance company pays? |
? |
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What is managed health care and what are the advantages and disadvantages of these PPOs? |
? |
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What is the difference between replacement value home owners insurance and actual cash value? |
Replacement: you get a new version of whatever needed replaced Actual cash value: insurance determines the value of the item and gives you cash value for what it's worth |
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What types of automobile insurance are you required to provide in Indiana? |
Property damage, bodily damage |
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What type of insurance covers the damage to your car if you are in an accident? |
Collision |
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What type of insurance would cover your car if it was destroyed in a fire or stolen? |
Comprehensive |
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What is no-fault insurance and what are the reasons some states have adopted it? |
Each insurance company is responsible for their own client |
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What are the factors listed in Chapter 18 that determine your automobile insurance rate? |
age, where you live, driving record, what kind of car you own, equipment on the car |
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What are the tips for what you should do if you are in a car accident listed in Chapter 18? |
Remain calm, call the police, write down the name of the driver, exchange insurance information |
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What are mutual funds? |
People pull their money to make an investment |
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Be able to use the "rule of 72" to determine the length of time you would double your investment |
Formula you use to figure out your investment |
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What is the difference between mutual funds and money market mutual funds? |
Mutual funds are stock market, money market is in bonds, safer investment |
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What is the difference between a defined benefit and defined contribution pension? |
? |
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What is the most popular retirement investment today? |
? |
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What do we call the system of withholding money from your pay check to cover your tax liability? |
overwithholding |
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What do we call it if your employer doesn't take enough money from your pay check and you end up owing taxes at the end of the year? |
underwithholding |
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Which form do you fill out with your employer when you begin a job to tell them how much money to take out of your pay check each pay period to cover your taxes? |
W-4 |
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Which form do you receive in January from your employer telling you how much you made and how much tax was taken from your pay during the previous year? |
W-2 |
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What date do you normally have to file your federal and state income taxes by? |
April 15 |
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What form do you receive from the bank telling you how much interest you earned from a savings account? |
? |
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What do we call it when you list all your deductions separately when you file your taxes? |
? |
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Why might you want to file a tax return even if you didn't make enough money to be required to file a tax return? |
? |
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Which form should you use if you are single with no dependents and only have a small amount of income from your normal job and very little interest income from your savings account? |
? |
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What do we call the amount on your tax return after you have subtracted your deductions and exemptions and made adjustments to your income? |
taxable income |
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Which form do you have to use if you make lots of money, over $100,000 taxable income, and want to itemize your deductions? |
Form 1040, or the blue form |
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Dollar for dollar which is better, a tax credit or tax deduction? |
a tax credit, it is a direct reduction in the tax you have to pay whereas a deduction or exemption just reduces the amount of income subject to tax. |
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Give an example of an Indiana tax credit |
? |
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What are the federal sources of funding for college? |
the FAFSA |
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What is a Pell grant? |
Does not have to be repaid, based on financial need and have been the main source of helping needy students go to college for over 30 years. |
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What are the suggestions for filing out an application? |
Copy the blank application form so that if you make a mistake, you can fill out another one without having to cross out or white-out parts of the form. |
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What do we call the written summary of your name, address, phone number, educational and work experience among other things to help you prepare for a job search? |
resume |
