Consumer Ed Exam

$500 or $1,000

•Depending on your income, you should have this much in your emergency fund.

3 – 6

•In your savings, you should enough to cover you for ___ months.

Liquidity

•This is how quickly you can turn your investments into cash.

10

•A bankruptcy will stay on your credit report for ____ years.

Debt Snowball

•Focusing on paying one debt at a time beginning with the smallest debt to gain momentum.

Debit Card

•This type of card is linked to your checking account and draws funds from it.

Credit Card

•This form of payment is similar to borrowing small amounts of money with each transaction.

Savings Account

•The most liquid type of investment.

Credit Limit

•This is the maximum amount allowed to be charged on a credit card.

Buyer Beware

•Caveat Emptor means…

Wealth

•Taxes on inheritance, estate, and large monetary gifts are called taxes on ___.

$1,100

•If you invest $1,000 at 10% interest annually, you will have ____ at the end of the year.

MLS

•This is the abbreviation for the service that lists all homes for sale.

Everyone who works.

•Who is required to file a tax return?

Equifax, Experian, and Transunion

•The three major credit bureaus are:

7

•Account information remain on your credit report for ____ years.

Memo Line

•This is the only optional part of a check.

Retirement

•An IRA is used to save for___.

Identity Theft

•This is the fastest growing crime in America.

Emergency fund, Purchases, and Wealth building

•The three basic reasons to save money.

15%

•The author recommends investing ___% of your income into retirement plans.

30 year fixed

•This is the most common type of mortgage.

Luxury

•Excise tax, which taxes gas, beer, liquor, and cigarettes, is also called a ____ tax.

Diversification

•To spread around your investment dollars among several different things to lower risk.

Federal, State, and FICA

•The three types of income taxes.

Adjustable Rate Mortgage

•These are short-term mortgages that offer a fixed interest rate for a few years and adjusts after that.

Both people

•Who should make the financial decisions in a marriage?

Paycheck to Paycheck

•When people spend their entire paycheck, the are living…

Property (Real Estate) Tax

•If you own a home you will have to pay a ___ tax.

Retail Price

•This is the full asking price for an item in a store.

Annual Fee

•This is a fee charged by a credit card company for the use of their credit card.

Life Insurance

•This type of insurance provides income to your family in case of your death.

The one better at it.

•Who should make the budget in a marriage?

300 – 850

•Credit scores range from:

April 15th

•The date taxes are due.

Long-Term Care Insurance

•This type of insurance pays for nursing home, assisted living facilities, or in-home care.

FDIC

•This is entity created by the government to guarantee deposits in banks.

After winter

•The best time to buy a snow blower.

Payment History

•This area makes up the largest portion of your credit score (35%).

Compound Interest

•Interest paid on interest previously earned.

Balloon Mortgage

•This short-term mortgage comes with a large payment at the end of the loan.

$300

•A significant purchase is anything over ____.

Invest

•The key to building wealth is to _____.

Collision

•This type of coverage pays for damage to your car in an accident.

Walk Away Power

•You lose this when you fall in love with an item you want to buy.

Remind them of who you are!

•After an interview, the purpose of the phone follow-up is to ___.

People you know!

•80% of identities are stolen by:

Mutual Fund

•When investors pool their money and allow a portfolio manager to invest the pool, they are contributing to a ____.

Cover Letter

•This should accompany your resume when applying for a job.

Buyer’s Remorse

•Regretting a purchase soon after making it.

13 – 15 years old

•Age range at which you should open a checking account for a child.

Transfer Risk

•The purpose of insurance is to:

Consumption

•Sales tax and Excise tax are both taxes on ___.

Comprehensive

•This type of coverage pays for damage to your car if it is stolen.

Social Security Number

•This number is tied to your identity and should be highly protected.

Interest

•Whenever you borrow money, you usually have to pay ____ on the money borrowed.

Credit Score

•This is a number based on a person’s creditworthiness.

The Federal Reserve

•This is the name of the central banking system in the US.

Zero-Based Budgeting

•This type of budget spends every dollar on paper before the month begins.

Real Estate

•This is the least liquid investment and usually requires you to have a lot of cash. It is also extremely risky.

Money Markets

•This type of investment includes CDs which can be bought at a bank.

Interest, Annual fee, Charging merchants.

•What are 3 ways a credit card company makes money?

Subprime Mortgage

•This type of mortgage are loans made to borrowers who are perceived to have high credit risk.

Job Satisfaction

•The most important factor in choosing a career should be ___.

Resume

•This document includes basic information about yourself including your education, work experience, and contact information.

Diners Club

•This was the first credit card created.

Money Market

•A great place to keep your emergency fund.

Forgetting to write everything down.

•This is the most common error when balancing a check book.

Bond

•This type of investment is a debt by which a company owes you money.

Stock

•This type of investment is purchasing a small piece of ownership in a company.

Interest Only Mortgage

•This is the type of mortgage in which you never pay towards the principle.

Murphy’s Law

•The idea that anything that can go wrong, will go wrong.

Income, Consumption, and Wealth

•The three areas that the government collect taxes are ___.

Social Security Benefits

•FICA is collected primarily to pay for ___.

Liability

•This is the only mandatory coverage if you own an automobile.