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WorksheetsPersonal Finance CSA 1 Review
Total questions: 58
Worksheet time: 29mins
Which of the would be the strongest password?
What is the purpose in the Truth in Lending Act?
Gives access for borrowers to know the total cost of taking out a loan
Only allows wealthy people to take out loans
Requires equal housing opportunities
Businesses can charge higher interest for customers at any time of the loan
When you receive an email that dishonestly obtains your personal information, you have been
skimmed
phished
Ponzi scheme
contacted about your car's extended warranty
The FDIC (Federal Deposit Insurance Corporation) is in charge of
Providing a platform to file complaints and review businesses
Keeping a consumer from being harassed with repeated phone calls about debt
Ensuring deposits are safe in banks up to a certain limit
Overseeing mutual fund accounts
Which of the following could cause you to not obtain or lose your job?
Negative/Inappropriate social media posts
willing to communicate
working as a team
being prompt to work and completing tasks
Which of the following is NOT positive work ethic?
not showing up for work on time
honesty
hardwork
dependability
What is the difference between a premium and deductible?
Balance of costly goods paid for in small monthly payments over a period of time (such as a mortgage or car loan.)
The show if one is creditworthy or not
a premium is the amount you pay for an insurance policy, while a deductible is the amount you pay for covered services before your insurance plan starts paying
to provide protection in cases of injury, natural disaster, health, etc.
Why would a tenant take a renter's insurance policy?
to protect their personal belonging in the event somethings takes place where they are a tenant
to ensure in event of fire or disaster, the loan (mortgage) could still be paid
Interest earned only on the original principal amount invested; it added to the original amount each time
loss of income, full payment for treatment, value of stolen items...
Why would someone choose to take out a disability insurance policy?
Nominally it look as if the account is gaining money; however, the real return does not often keep up with inflation
In case of injury or sickness, they do not lose all of their income
the percentage of APR is the amount of interest placed on loans and money owed on credit cards
to protect their personal belonging in the event somethings takes place where they are a tenant
What is the difference in liability and full coverage automobile insurance?
how risky it may seem for creditors to lend you money
No. Either you have to sale your assets or create a payment plan to pay back your creditors - stays on credit history for 10 years
liability only covers the other motorist and their vehicle in an accident, while full coverage covers both vehicles; only cars who have a clear title can have liability insurance
the financial institution main source of revenue comes from interest on loans
Why do people buy insurance?
The higher value of your home, the higher the property tax (reevaluated over time); local services
the listing of payments, principal, interest and remaining balance over the life of a loan
to provide protection in cases of injury, natural disaster, health, etc.
The show if one is creditworthy or not
What is bankruptcy? Why would someone choose to take this option financially?
Being legally released from obligation to repay some or all debts. They are not able to pay and continue to go further in debt.
Most people who are obtaining money from a payday or title-pawn company are low credit scores and a risk for repayment, banks/credit unions have turned them down
Estate taxes are collected on the value of times/funds passed down after one's death ($12.06 mill)
the percentage of your monthly gross income (your pay before taxes and other deductions are taken out) that goes to paying your monthly debt payments.
Define revolving credit.
When the interest rates are high; when interest rates are lowered the loan interest will go down as well
The principal of a loan is the original loan amount, while the interest is the percentage/amount changed by the lending institution
liability only covers the other motorist and their vehicle in an accident, while full coverage covers both vehicles; only cars who have a clear title can have liability insurance
a line of credit that may be used over and over again up to a certain borrowing limit
Define installment credit.
Balance of costly goods paid for in small monthly payments over a period of time (such as a mortgage or car loan.)
the percentage of APR is the amount of interest placed on loans and money owed on credit cards
progressive - higher tax rate the higher the income
a premium is the amount you pay for an insurance policy, while a deductible is the amount you pay for covered services before your insurance plan starts paying
How does the way one uses and pays on credit cards help or hurt their credit score?
Estate taxes are collected on the value of times/funds passed down after one's death ($12.06 mill)
Help - low or paid off balance
To determine the risk of loaning the individual money/credit = interest rate or even denying loan application
the listing of payments, principal, interest and remaining balance over the life of a loan
What is credit worthiness?
how risky it may seem for creditors to lend you money
the financial institution main source of revenue comes from interest on loans
a premium is the amount you pay for an insurance policy, while a deductible is the amount you pay for covered services before your insurance plan starts paying
Interest paid on interest previously earned; you earn/pay more money over time
Why are credit scores related to the interest rate one is given for a loan or credit card?
To show if one is creditworthy or not
pay off during the grace period (before the billing cycle)
loss of income, full payment for treatment, value of stolen items...
The credit report contains information of one's credit history, open accounts, lines of credit, payment history..., this information is used to create one's credit score
What is the difference between a credit report and a credit score?
Being legally released from obligation to repay some or all debts. They are not able to pay and continue to go further in debt
The credit report contains information of one's credit history, open accounts, lines of credit, payment history..., this information is used to create one's credit score
to ensure in event of fire or disaster, the loan (mortgage) could still be paid
Their net income would decrease for paying bills, investing, and saving; federal and state programs - in GA most goes back into education
What is the difference between progressive and regressive taxes?
It is a progressive tax (like income) - the more money you make, the higher percentage is taxed
The credit report contains information of one's credit history, open accounts, lines of credit, payment history..., this information is used to create one's credit score
The principal of a loan is the original loan amount, while the interest is the percentage/amount changed by the lending institution
progressive - higher tax rate the higher the income
How does the value of a home or property impact property taxes? What are these taxes used for?
The higher value of your home, the higher the property tax (reevaluated over time); local services
loss of income, full payment for treatment, value of stolen items...
No. Either you have to sale your assets or create a payment plan to pay back your creditors - stays on credit history for 10 years
a line of credit that may be used over and over again up to a certain borrowing limit
How do capital gains taxes impact money made from investments?
It is a progressive tax (like income) - the more money you make, the higher percentage is taxed
The credit report contains information of one's credit history, open accounts, lines of credit, payment history..., this information is used to create one's credit score
Balance of costly goods paid for in small monthly payments over a period of time (such as a mortgage or car loan.)
progressive - higher tax rate the higher the income
How would an increase in income taxes impact one's budget? What are these taxes used for?
When the interest rates are high; when interest rates are lowered the loan interest will go down as well
Their net income would decrease for paying bills, investing, and saving; federal and state programs - in GA most goes back into education
When the interest rates are low; to lock in the lower rates and not incur higher interest later
Interest paid on interest previously earned; you earn/pay more money over time
Why do investors tend to not focus on using savings accounts as a main method of gaining wealth?
It is a progressive tax (like income) - the more money you make, the higher percentage is taxed
automobile - clean driving record, less populated travel areas, age, defensive driving classes
To determine the risk of loaning the individual money/credit = interest rate or even denying loan application
Nominally it look as if the account is gaining money; however, the real return does not often keep up with inflation
What is compound interest? How does this interest impact loans and savings?
Interest paid on interest previously earned; you earn/pay more money over time
The credit report contains information of one's credit history, open accounts, lines of credit, payment history..., this information is used to create one's credit score
to ensure in event of fire or disaster, the loan (mortgage) could still be paid
Help - low or paid off balance
What is simple interest? How does this interest impact loans and savings?
When the interest rates are low; to lock in the lower rates and not incur higher interest later
Interest earned only on the original principal amount invested; it added to the original amount each time
It is a progressive tax (like income) - the more money you make, the higher percentage is taxed
In case of injury or sickness, they do not lose all of their income
When should a borrower think about taking out a fixed interest rate loan? Why?
When the interest rates are high; when interest rates are lowered the loan interest will go down as well
progressive - higher tax rate the higher the income
a premium is the amount you pay for an insurance policy, while a deductible is the amount you pay for covered services before your insurance plan starts paying
When the interest rates are low; to lock in the lower rates and not incur higher interest later
When should a borrower think about taking out a variable interest rate loan? Why?
When the interest rates are low; to lock in the lower rates and not incur higher interest later
When the interest rates are high; when interest rates are lowered the loan interest will go down as well
the listing of payments, principal, interest and remaining balance over the life of a loan
Estate taxes are collected on the value of times/funds passed down after one's death ($12.06 mill)
Why do most amortizations focus on paying off interest first?
the financial institution main source of revenue comes from interest on loans
Nominally it look as if the account is gaining money; however, the real return does not often keep up with inflation
liability only covers the other motorist and their vehicle in an accident, while full coverage covers both vehicles; only cars who have a clear title can have liability insurance
The show if one is creditworthy or not
What is an amortization schedule?
Estate taxes are collected on the value of times/funds passed down after one's death ($12.06 mill)
the listing of payments, principal, interest and remaining balance over the life of a loan
Their net income would decrease for paying bills, investing, and saving; federal and state programs - in GA most goes back into education
being legally released from obligation to repay some or all debts. They are not able to pay and continue to go further in debt.
How does the APR influence the payment of a loan or credit card?
the percentage of APR is the amount of interest placed on loans and money owed on credit cards
Most people who are obtaining money from a payday or title-pawn company are low credit scores and a risk for repayment, banks/credit unions have turned them down
a premium is the amount you pay for an insurance policy, while a deductible is the amount you pay for covered services before your insurance plan starts paying
the percentage of your monthly gross income (your pay before taxes and other deductions are taken out) that goes to paying your monthly debt payments.
What is the difference between the principal and interest of a loan?
Nominally it look as if the account is gaining money; however, the real return does not often keep up with inflation
The principal of a loan is the original loan amount, while the interest is the percentage/amount changed by the lending institution
The higher value of your home, the higher the property tax (reevaluated over time); local services
Income - progressive = money taken from your pay wages at state and federal levels and increase as wages increase
Why do many people choose to not use or invest in cryptocurrency?
to keep from paying the high interest rates
to ensure there are enough funds (money) in your account and not accrue overdraft charges
The gross wages (income) you earned from that job
Speculation on the security and lack of secure returns (too risky)
Compare and contrast banks and credit unions?
Both allowed for money to be stored and borrowed (loans)
parents, checking account information, and types of income; to see what types of grants and scholarships they can qualify for and to also take out student loans
Stocks tend to make money over time than the interest gained from a savings account
medium of exchange, store of value, unit of account/standard of value
What is the difference between depreciation and appreciation?
Depreciation - value goes down
medium of exchange, store of value, unit of account/standard of value
take any receipts or bills being taken out of your account or deposits going into your account and compare with what has processed with the bank
Pros: do not have to pay taxes or maintenance
What is a mutual fund? How does it help diversify your money?
The gross wages (income) you earned from that job
a digital or virtual currency that uses cryptography for security
an investment program funded by shareholders that trades in diversified holdings and is professionally managed; keeps from all moneys being pooled into one place
Stocks tend to make money over time than the interest gained from a savings account
Why would one choose to take a risk to invest in the stock market over a savings account?
Stocks tend to make money over time than the interest gained from a savings account
a debit card withdraws money from your checking account to pay for purchases; credit cards used funds that must be paid back to make purchases
create a list of criteria (needs and wants) and compare to the different options available
to make the best informed decision based on criteria you set
Why should you pay off or keep the balance low on a credit card?
to keep from paying the high interest rates
The gross wages (income) you earned from that job
Pros: do not have to pay taxes or maintenance
You and your spouse's information
What is the difference between payday loans and title pawns? Why would one choose one over the other?
Scholarships and grants are monies that do not have to be paid back like loans
Payday lenders loan out small amounts to money based on your pay; title pawns loan out money based on the value of the item
Money, homes, cars, stocks,...
an investment program funded by shareholders that trades in diversified holdings and is professionally managed; keeps from all moneys being pooled into one place
How do the different financial institutions make a profit?
charging interest
Payday lenders loan out small amounts to money based on your pay; title pawns loan out money based on the value of the item
to make the best informed decision based on criteria you set
Scholarships and grants are monies that do not have to be paid back like loans
Explain what is found on the IRS form 1040 lines below.
parents, checking account information, and types of income; to see what types of grants and scholarships they can qualify for and to also take out student loans
You and your spouse's information
Pros: do not have to pay taxes or maintenance
Money, homes, cars, stocks,...
How do you determine one's net worth?
Assets (what you have of value) - Liabilities (what you owe) = Net Worth
Scholarships and grants are monies that do not have to be paid back like loans
Social Security
Income, expenditure (bills and other needs), savings
How do you reconcile a checking account?
to ensure there are enough funds (money) in your account and not accrue overdraft charges
Social Security
take any receipts or bills being taken out of your account or deposits going into your account and compare with what has processed with the bank
Pros: freedom to travel as needed, ownership
Why is it important to reconcile your checking account frequently?
to ensure there are enough funds (money) in your account and not accrue overdraft charges
HOPE - merit based scholarship (grades)
Long term - education, home, car
create a list of criteria (needs and wants) and compare to the different options available
What are the roles/functionals money can be used for?
medium of exchange, store of value, unit of account/standard of value
Both allowed for money to be stored and borrowed (loans)
parents, checking account information, and types of income; to see what types of grants and scholarships they can qualify for and to also take out
create a list of criteria (needs and wants) and compare to the different options available
What is an IRS 1040 form? What is it used for?
Pros: freedom to travel as needed, ownership
a debit card withdraws money from your checking account to pay for purchases; credit cards used funds that must be paid back to make purchases
The Federal tax filing form
Retirement such as 401k
What are mandated deductions taken from one's pay?
Social Security
parents, checking account information, andy types of income; to see what types of grants and scholarships they can qualify for and to also take out student loans
a digital or virtual currency that uses cryptography for security
charging interest
What is the difference between gross pay and net pay?
Gross pay is your total earnings in a pay period
to make the best informed decision based on criteria you set
Depreciation - value goes down
Assets (what you have of value) - Liabilities (what you owe) = Net Worth
What is a W2 form? What is it used for?
A summary of your earnings and deductions for the year. Used to fill out portion of tax form 1040
to keep from paying the high interest rates
medium of exchange, store of value, unit of account/standard of value
a digital or virtual currency that uses cryptography for security
Jobs pay based on wages (hours worked), salary or tips. What is the difference between these forms of earnings?
Wage: pay is based off a set price per hour
The Federal tax filing form
The gross wages (income) you earned from that job
HOPE - merit based scholarship (grades)
What are different types of generational wealth that can be passed down?
medium of exchange, store of value, unit of account/standard of value
to make the best informed decision based on criteria you set
merit - grades/GPA
Money, homes, cars, stocks,...
What is generational wealth? How is generational wealth passed down from the older generation?
Retirement such as 401k
Both allowed for money to be stored and borrowed (loans)
Money or items of value passed down within a family; gifted while the person is alive or through a will post death
medium of exchange, store of value, unit of account/standard of value
What are the pros and cons of renting a home?
Pros: do not have to pay taxes or maintenance
medium of exchange, store of value, unit of account/standard of value
Social Security
Money or items of value passed down within a family; gifted while the person is alive or through a will post death
What are the pros and cons of buying a home?
The Federal tax filing form
Pros: Investment tends to go up in value, you can make changes, ownership
create a list of criteria (needs and wants) and compare to the different options available
Both allowed for money to be stored and borrowed (loans)
What information is needed for one to fill out a FAFSA application? Why is filling out a FAFSA application important?
parents, checking account information, and types of income; to see what types of grants and scholarships they can qualify for and to also take out student loans
The gross wages (income) you earned from that job
Assets (what you have of value) - Liabilities (what you owe) = Net Worth
to ensure there are enough funds (money) in your account and not accrue overdraft charges
Why should one going to college try to apply for as many scholarships as possible?
a debit card withdraws money from your checking account to pay for purchases; credit cards used funds that must be paid back to make purchases
Scholarships and grants are monies that do not have to be paid back like loans
Income, expenditure (bills and other needs), savings
merit - grades/GPA
What is the difference between the HOPE scholarship, PELL grant, and a Subsidized/Unsubsidized loan?
HOPE - merit based scholarship (grades)
Pros: Investment tends to go up in value, you can make changes, ownership
Gross pay is your total earnings in a pay period
an investment program funded by shareholders that trades in diversified holdings and is professionally managed; keeps from all moneys being pooled into one place
How does the rational decision-making process work (set-up)?
Social Security
Pros: Investment tends to go up in value, you can make changes, ownership
A summary of your earnings and deductions for the year. Used to fill out portion of tax form 1040
create a list of criteria (needs and wants) and compare to the different options available
What is the purpose of using the rational decision-making model for life post high school?
to make the best informed decision based on criteria you set
Assets (what you have of value) - Liabilities (what you owe) = Net Worth
to ensure there are enough funds (money) in your account and not accrue overdraft charges
a debit card withdraws money from your checking account to pay for purchases; credit cards used funds that must be paid back to make purchases
