Personal Financial Decision Making

Which of the following breaks payments down into principal and interest?

• Adjustable rate

• FICO Score

• Loan Default

• Amortization

What components most directly affect the amount of the mortgage payment?

• Income, gender, and age of the person applying for the mortgage

• Interest rate, amount borrowed, length of loan

• Collateral available at time of loan

• Federal reserve guarantee, stability of the lending institution

Ricks grandparents gave him $100.00 for his birthday this year, but he is having trouble deciding what to do with it. He can put his money into a savings account, he can buy a brand new bike, or he can buy his best friend a birthday present. He wants to think through all of the alternatives and make a wise choice. Ricks decision will be based on?

• Routine and major

• Behaviors and habits

• Values and goals

• Work ethic & time management

What is the definition of a major decision?

• Choices that may become habit

• A choice that helps to identifying personal interest

• Choices that have long term effects on a person's life

• Choices that are made on a day-to-day basis

Which THREE of the following does a career plan include? (Choose 3)

• Educational credentials

• Occupational goal

• Parent/Guardian education

• Skill development

Sarah is going away to college and she needs to open a bank account to help her manage her everyday expenses and purchases.  She will have monthly expenses of rent, utilities, food and entertainment. Which account would be the BEST choice for Sue?

• Checking Account

• Money Market Account

• Savings Account

• Certificate of Deposit

What are important considerations when making a purchase? (Choose 4)

• Shipping Cost

• Location

• Price

• Return Policy

To finance his purchase of his new car, Sean must make a 10% down payment and pay all sales taxes up front.  If the car has a sales price of $25,000 and state sales tax rate of 7%, how much money must Sean pay for the car up front?

• $4,500

• $750.00

• $4,250

• $1,750

Hannah needs a safe savings and spending tool that is liquid and accessible. Which of the following tools should she choose?

• Money Market Account

• Cash

• Checking Account

• Certificate of Deposit

What is the amount charged for the use of borrowed money?

• Term

• Interest

• Principal

• Rate