Personal Finance Exam

Card Set Information

Personal Finance Exam
2011-01-14 18:30:56
Vocabulary Terms

Show Answers:

  1. a process of setting goals, developing a plan to achieve them, and puttin the plan into action.
    Financial Planning
  2. the very basic things that we MUST have to survive.
  3. the things that make life more interesting and fun, but you could live without them if you had to.
  4. the beliefs and practices in your life that are very important to you and can be influenced by your parents, friends, religion, and experiences.
  5. something that you aim for that will point you in the direction you need to take.
  6. a goal that is for your life and what you want to do with it, for instance, going to college or taking the SATs.
    Personal Goal
  7. a goal that involves money, how you're going to get it, how you are going to save, how much you are saving, what you are planning on using it for, ect.
    Financial Goal
  8. goals that you want to acheive within the next three months.
    Short-term Goals
  9. goals that are set for three months to a year.
    Intermediate-term Goals
  10. goals that it will take you more than a year to achieve.
    Long-term Goals
  11. with long-term goals, you have to be willing to give up something you want now to get something even better in the furture.
    Delayed Gratification
  12. I want to go to Panama City for Spring Break
  13. I will need $150 for my share of the hotel room for the week.
  14. I will split the driving with my friends and take $200 more for gas, food, and other spending.
  15. I will save $60 a month from my paycheck for the next six months.
  16. I want to save all the money by March 1st.
  17. SMART GOALS stands for...
    specific, measurable, attainable, realistic, and time-bound
  18. measures the money you recieve and the money you spend.
    Cash Flow
  19. Name the Six steps in making a decision.
    indentify goal, establish criteria, examine options, weigh pros and cons, make decision, evaluate results
  20. when you cannot accomplish both goals and decide on one now and one later
    opportunity cost
  21. when a major decision leads to smaller ones
    satellite decisions
  22. name the five steps to financial planning
    set smart gols, analyze information, create plan, implement plan, and monitor and modify plan
  23. a plan for managing your money during a given period of time.
    spending plan or budget
  24. money you have coming in
  25. fee collected by a federal government to support its programs
    federal income tax
  26. a fee that is collected to help pay for state services
    state income tax
  27. a fee that provides a small income and other services to the elderly
    social security tax
  28. fee that provides medical insurance to the elderly and other disabled Americans
    Medicare tax
  29. the total amount of income from your wages or before any payrolll deductions
    gross income
  30. know as you take home pay
    net income
  31. what you spend money on
  32. what people usually do to meet short term goals
  33. means you are setting your money aside for longer term goals
  34. refers to the relationship amoung time, money, and rate of interest
    time value of money
  35. rise in the cost of goods and services over time
  36. the idea of earning interest on interest
    compounding or compound interest
  37. a share of the profits you recieve as a stockholder
  38. growth stock prices
    capital gains
  39. savings account, savings bonds, cds, money market deposit accounts, money market mutual funds, corporate and government bonds
    income investments
  40. stocks, real estate, collectibles, and mutual funds
    growth investment
  41. reducing investment risk by putting money in several different types of investments
  42. investing a fixed amount in the same investment at regular intervals, regardless of what the market is doing.
    dollar cost averaging