Personal Finance Review- Kane, Pinto, Hilferty

What is personal finance?

• Future planning of money that takes into account investments and spending

• The financial management to budget, save, and spend monetary resources right now

• Financial planning so that one does not go broke

• Education on how to balance a checkbook

What is the difference between a short term goal and a long term goal?

• Short term goal= up to 1 year; long term goal= greater than 5 years

• Short term goal= up to 2 years; long term goal= up to 5 years

• Short term goal= up to 5 years; long term goal= greater than 10 years

• Short term goal= less than 1 year; long term goal= greater than 7 years

What athlete is most likely to go broke?

• Tennis

• Basketball

• Baseball

• Football

What is the difference between a job and a career?

• A job is a long term profession that requires high education levels; A career is a short term job that does not require high education levels

• A job is a task you perform for minimum wage and is usually done by teenagers; A career is a task you perform for a salary and is for adults

• A job is a long term profession for teenagers and has a high paying salary; A career is a short term profession for adults to support their basic needs

• A job is any work you perform to earn money to support basic needs that is usually short term; A career is a long term professional job that caters to your personal interests and requires higher education

What is disposable income?

• Income that you take home before taxes are withdrawn

• The amount of income that was taken out for taxes and other charges

• Income that remains after deducting taxes and other mandatory charges

• Bonus income that is added onto your paycheck during the holidays

True or False… Implicit Cost requires a money payment?

• True

• False

What is the explicit cost?

• The cost of an opportunity lost.Requires a money purchase; monetary cost

• Does not require a money purchase; money that could’ve been earned

• Requires a money purchase; monetary cost

• Cost for student aid

What is the opportunity cost?

• Includes both implicit and explicit costs.

• Includes implicit cost only

• Includes explicit cost only

• Includes neither implicit or explicit costs

How is education and poverty related?

• Higher education = higher poverty rate

• Lower education = lower poverty rate

• Higher education = lower poverty rate

• They aren’t related

What is a form completed by current and prospective college students in the United States to determine their eligibility for student financial aid?

• Common App

• IRS

• Tax Return

• FAFSA