Test 3 Personal Finance

What is a budget?

• A type of savings account

• A way to invest for retirement

• A fund for emergencies

• A financial plan that defines expenses for a period of time.

Personal Financial Planning

• Financial issues that can affect an individual.

• Process of planning every aspect of your personal finances.

• Something owned that can be rapidly converted to cash without a risk of significant loss.

Liquid assets

• Financial issues that can affect an individual.

• Process of planning every aspect of your personal finances.

• Something owned that can be rapidly converted to cash without a risk of significant loss.

Lindsey got her first paycheck and noticed that she only took home $62.45 this week. She worked 10 hours and made $8 an hour.

How much did her employer withhold from her paycheck?

• 17

• 18.35

• 15.23

• 17.55

Michael is thinking about buying a car and is comparing two vehicles. One gets 15 miles per gallon (mpg) and the other gets 30 mpg. Assuming he drives 4,000 miles per year and gas is $3 a gallon, how much money would he save by buying the more fuel efficient car?

• 429

• 500

• 400

Cost

• Comparing the cost of two or more goods or services in an effort to find the best value

• the price paid for a good or service

• an outcome that promotes well being

What is debt?

• Money you have borrowed and need to pay back

• Money you make from working at a job

• Money you make from the government

• Taxes that you pay when you buy something

Tags

CCSS.RI.11-12.5

CCSS.RI.6.5

CCSS.RI.7.5

CCSS.RI.8.5

CCSS.RI.9-10.5

What is income?

• The amount you spend

• The amount you don't save

• Money taken in

Tags

CCSS.5.NBT.A.3B

fixed expense

• Money paid out or spent.

• Money received from various sources

• Anything on which we spend money

• Those expenses that remain the same from period to period.

Jared anticipates working 10 hours a week during the 34-week school year. He will work 40 hours per week for the remaining 18 weeks when school is out. Assuming he makes $8 an hour, what is his forecast for income next year?

• 8480

• 8400

• 8000