Personal Finance Review Concepts Overview

This video covers personal finance topics, including budgeting, saving, investing, and financial intermediaries. It explains incentives, decision-making grids, and the importance of budgeting. The video also discusses financial intermediaries like banks, risk and return in investments, tax structures, credit and loans, types of interest, and insurance basics.

What is an incentive?

• A financial plan for the future

• Something that motivates you to do or not do something

• A method of saving money

• A type of investment

What is a decision-making grid used for?

• To determine the best course of action when making decisions

• To analyze financial intermediaries

• To calculate taxes

• To create a budget

What is the purpose of a budget?

• To determine how much money you have and how much you will spend

• To determine your credit score

• To invest in stocks

• To calculate your taxes

What is a financial intermediary?

• A type of insurance

• An establishment that channels money from savers to borrowers or investors

• A type of tax structure

• A method of budgeting

What is the relationship between risk and return?

• Lower risk usually means higher return

• Higher risk usually means higher return

• Higher risk usually means lower return

• Risk and return are not related

Which investment option is considered low risk?

• Payday loans

• Savings accounts

• Mutual funds

• Stocks

What is a progressive tax system?

• A tax system that only applies to sales tax

• A tax system where the more you make, the less you pay

• A tax system where the more you make, the more you pay

• A tax system where everyone pays the same percentage

What are the three C's of creditworthiness?

• Credit score, Capacity, Collateral

• Character, Capacity, Collateral

• Character, Credit score, Collateral

• Character, Capacity, Credit score

What is a deductible in insurance terms?

• The shared liability amount

• The monthly premium

• The amount you pay in the event of an accident

• The total amount you pay for coverage

Which of the following is important for success in the workplace?

• Good communication

• Being punctual

• Self-motivation

• All of the above