Podcast
Questions and Answers
Randy earns $22 per hour. This is an example of:
Randy earns $22 per hour. This is an example of:
What is a credit score?
What is a credit score?
A number that represents the risk a lender takes on a borrower.
Phil Reagan has written a check to USA Electronics for $152.65. Is this check filled out correctly?
Phil Reagan has written a check to USA Electronics for $152.65. Is this check filled out correctly?
False
An account that allows you to save money, as well as make deposits and withdrawals.
An account that allows you to save money, as well as make deposits and withdrawals.
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How is the employee paid?
How is the employee paid?
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When budgeting, large expenses should be __________________.
When budgeting, large expenses should be __________________.
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A secured loan is backed by __________________.
A secured loan is backed by __________________.
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Jimmy has poor credit, but would like to repair his credit with a credit card. For what type of card should Jimmy apply?
Jimmy has poor credit, but would like to repair his credit with a credit card. For what type of card should Jimmy apply?
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What is the total amount of debt this person owes?
What is the total amount of debt this person owes?
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Consumer credit can help a lender determine how much a borrower is charged to borrow money.
Consumer credit can help a lender determine how much a borrower is charged to borrow money.
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What is the definition of a 'want'?
What is the definition of a 'want'?
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A __________ allows you to invest your money with a set interest rate for a pre-set period of time.
A __________ allows you to invest your money with a set interest rate for a pre-set period of time.
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Is debt-to-income a factor when a lender is assessing whether to loan a borrower money?
Is debt-to-income a factor when a lender is assessing whether to loan a borrower money?
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Wages, salary, and commission are examples of what type of income?
Wages, salary, and commission are examples of what type of income?
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James earns 10% of every sale he makes. This is an example of:
James earns 10% of every sale he makes. This is an example of:
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Credit allows you to?
Credit allows you to?
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What is an interest rate?
What is an interest rate?
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Income generated by selling an investment at a higher price than you paid for it.
Income generated by selling an investment at a higher price than you paid for it.
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What is the status of this account?
What is the status of this account?
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What is principal?
What is principal?
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The quality, state, or fact of being able to generate, create, enhance, or bring forth goods and services.
The quality, state, or fact of being able to generate, create, enhance, or bring forth goods and services.
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How many credit accounts does this person have?
How many credit accounts does this person have?
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Which influence on spending deals with a person's family, friends, and cultural environment?
Which influence on spending deals with a person's family, friends, and cultural environment?
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Lillian purchased a house for $150,000. Lillian and her husband invested $50,000 into home improvements. Lillian and her husband were able to sell the house for $200,000. Is this an example of portfolio income?
Lillian purchased a house for $150,000. Lillian and her husband invested $50,000 into home improvements. Lillian and her husband were able to sell the house for $200,000. Is this an example of portfolio income?
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The life of a CD (Certificate of Deposit) can range from a few ____________.
The life of a CD (Certificate of Deposit) can range from a few ____________.
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Education, training, and experience are some factors that influence earned income.
Education, training, and experience are some factors that influence earned income.
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Money you earn from assets you have purchased or created. Generally recurring income.
Money you earn from assets you have purchased or created. Generally recurring income.
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Using misleading product images is an example of what type of deceptive advertising?
Using misleading product images is an example of what type of deceptive advertising?
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Using this graph, which budget item has the largest allowance?
Using this graph, which budget item has the largest allowance?
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How many hours did this employee work during this pay period?
How many hours did this employee work during this pay period?
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What is interest?
What is interest?
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How many hours of vacation has this employee used for this pay period?
How many hours of vacation has this employee used for this pay period?
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Meredith received a refund of $500. Meredith needs a new laptop, but she would also like to go on vacation to the Bahamas. If Meredith purchases the laptop, what is her opportunity cost?
Meredith received a refund of $500. Meredith needs a new laptop, but she would also like to go on vacation to the Bahamas. If Meredith purchases the laptop, what is her opportunity cost?
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The top salary you can make.
The top salary you can make.
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What is a credit card?
What is a credit card?
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How many payments have been late by at least 30 days?
How many payments have been late by at least 30 days?
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An account that allows you easy access to your money and allows the use of checks and debit cards.
An account that allows you easy access to your money and allows the use of checks and debit cards.
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Study Notes
Personal Financial Literacy Concepts
- Wages: Randy earns $22 per hour, illustrating the concept of wages in employment income.
- Credit Score: Represents the risk a lender takes on a borrower, typically a numerical value affecting borrowing terms.
- Incorrect Check: Phil Reagan’s $152.65 check to USA Electronics is noted as filled out incorrectly.
- Account Types: A checking account allows deposits and withdrawals while providing easy access to funds.
- Employee Payment: Employees are often compensated through wages.
- Budgeting Large Expenses: Should be divided equally across all paychecks to manage cash flow effectively.
- Secured Loans: These loans are backed by collateral, providing security to lenders.
- Secured Credit Card: Recommended for individuals like Jimmy with poor credit to help rebuild their credit score.
- Total Debt: An individual may owe a total debt amounting to $20,475.
- Consumer Credit: Helps lenders assess how much to charge borrowers for loans.
- Wants vs. Needs: A “want” is defined as something desirable to have but not essential.
- Certificate of Deposit (CD): Allows investment of funds at a set interest rate for a predetermined duration.
- Debt-to-Income Ratio: Important factor for lenders when evaluating loan applications.
- Types of Income: Wages, salary, and commission types of income are categorized as earned income.
- Commission: James earns 10% from every sale, exemplifying commission-based income.
- Use of Credit: Enables immediate purchase with delayed payment.
- Interest Rate: The cost incurred for borrowing money, charged by lenders.
- Portfolio Income: Gained by selling investments at a profit.
- Account Status: Account can be labeled as potentially negative but closed.
- Principal: Refers to the non-interest portion of a loan amount.
- Productivity: The ability to generate and deliver goods and services effectively.
- Credit Accounts: Individual may have a total of 10 credit accounts.
- Cultural Influence on Spending: Family, friends, and cultural contexts significantly impact spending behavior.
- Portfolio Income and Real Estate: Lillian’s house sale scenario does not qualify as portfolio income despite the profit.
- Certificate of Deposit Duration: Typically ranges from a few months to several years.
- Factors Influencing Earned Income: Education, training, and experience are crucial determinants of earned income potential.
- Passive Income: Income generated from assets that typically recurs without active involvement.
- Deceptive Marketing: Misleading product images fall under deceptive descriptions in advertising.
- Budget Allocation: Graph analysis often shows housing as the largest budget item.
- Work Hours: Employees commonly work 80 hours during a standard pay period.
- Interest Definition: This is the cost of borrowing money, represented by a specific rate.
- Vacation Hours Used: An employee may use 18 hours of vacation within a pay period.
- Opportunity Cost: If Meredith chooses to buy a laptop instead of going to the Bahamas, her opportunity cost is the vacation.
- Earning Potential: The maximum salary a person can achieve in their career or job role.
- Credit Card Definition: A bank-issued card that enables purchasing goods and services on credit.
- Late Payments: An individual may have six payments that were late by at least 30 days.
- Access to Funds: A checking account provides convenient access and facilitates the use of checks and debit cards.
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Description
Test your knowledge on personal financial literacy with these flashcards. From understanding wages to credit scores and checks, this quiz covers vital financial concepts to enhance your financial skills.
