WorksheetsUnderstanding Fixed and Variable Expenses
Total questions: 22
Worksheet time: 12mins
What are fixed expenses?
Expenses that are taken directly out of your checking account.
Expenses that change from month-to-month.
Expenses that stay the same and are predictable from month-to-month.
Expenses for things you want.
Utilities are considered ________ expenses.
Fixed expenses
Essential or necessary expenses
Optional Expenses
Discretionary Expenses
What is the Rule of 72?
The Rule of 72 helps you figure out how long it takes your money to double with simple interest.
The Rule of 72 works with even numbers only.
The Rule of 72 applies to all investments.
The Rule of 72 helps you figure out how long it takes your money to double with compound interest.
Spreading your money across different types of investments rather than putting all your money in one place is called:
Investing
Diversification
Saving
Dow Jones Industrial
This provides retirement income for people age 62 and older, disability benefits for people who can't work due to injury or illness, and survivor benefits for families of workers who have died.
Medicare
Medicaid
401(k)
Social Security
This is a statement shows your financial health by listing everything you own (assets) minus everything you owe (liabilities).
W-2
Personal net worth statement
Investment Portfolio
Broker
What might be some hidden costs when you get something from a family member?
Repairs/maintenance
Time and effort to get the item
Storage costs for larger items
There aren't any costs...it's free!
In finance "liquidity" most accurately refers to:
The total amount of profit a company generates at the end of a fiscal year.
The ease and speed with which an asset can be converted into cash without significantly affecting its market price.
The long-term ability of a business to pay off all its debts, including mortgages and multi-year loans.
The process of increasing the value of an asset through market speculation and demand.
Why is liquidity an important part of good financial health?
So you can have easy access to cash in the case of an emergency or other unexpected expenses.
It prevents stock prices from ever decreasing during a market downturn.
It keeps your money tied up in high yield savings accounts
So your money is safe in one place.
Which retirement plan is offered by public (government, schools, etc.) employers?
401(k)
457
Roth IRA
403(b)
Saving for a vacation, building an emergency fund, saving to buy a new phone are examples of:
50-30-20
Short-term goals
Long-term goals
Intermediate goals
Spending money on movies, concerts, eating out, and clothes is considered:
Fixed Expenses
Discretionary expenses
Retirement planning
Investment portfolio
Common costs associated with investing include:
Trading fees
Management fees
Interest rates
Expense ratios
This is an organization that regulates brokers & firms to protect investors:
FINRA
SEC
FCC
FDA
This investment tool is a collection of money from many investors, is managed by professionals who invest in stocks, bonds, or other securities:
Index fund
Mutual fund
401(k)
Pension
How are your Social Security benefits determined?
You get to pick how much you want
How much you earned while you were working
How many years you worked
How old you are when you start drawing benefits
This retirement tool allows you to save money, allows you to put in money that you've already been taxed on, pull money out for education or to buy a house without penalty, and your withdrawals are not taxed when you pull out your money.
Traditional IRA
Mutual Fund
Certificate of Deposit
Roth IRA
What are some roles of government that influence personal planning?
Social Security & Medicare programs
Regulation of banks & investment firms
Consumer protection laws
Tax & economic policies
Minimum wage requirements
Company performance & profits, investor confidence and demand, economic conditions, industry trends, news & announcements about a company, and overall market conditions all influence:
How much Social Security you receive.
How much government bonds cost
Stock market prices
How much you can deposit in your 401(k)
___________ __________ protects you by covering the cost of repairs or replacement if your home or belongings are damaged or stolen due to covered events like fire, theft, or weather damage.
Personal property taxes
Personal property rider
Personal property investment
Personal property insurance
Compound interest is when interest is paid on both the principal and the interest you've already earned.
True
False
Simple interest is when interest is paid on both the principal and the interest you've already earned.
True
False
