According to the department of labor, finishing even one year of college raises an average person's income a lot for the rest of that person's life. What your budget is and how much you can afford, What statement below is the most correct in terms of car loans, Car loans use cars as collateral. Which items below would be good reasons to regularly keep track of your personal spending records? Because you pay less in interest when you have good credit, you are able to save more. Record the information for paying the telephone bill on Check Stub 41 and complete the check stub. We talk about doing your homework before spending any money. True or false? my decision to go to college or my decision to drop out of college will impact the rest of my life, True or false? In this module, we talk in detail about critical thinking skills. Journalize the transactions continuing on the next blank line of page 1 of the journal. The job of any gambling operation is to make sure you never gamble over your personal limit. If you die prematurely, if you die late in your life and your policy is still current, or if you die in an accident, In which cases does property insurance give you coverage. Comprehensive insurance is when your insurance company usually does what? What is the maximum amount of money you should spend. \text{b. The group only offers advice and ways to spend responsibly - and their services are free. But their job is to rent you their apartment, not to send you to another apartment building. You skip buying new jeans and put the money in your college fund, you deposit your entire paycheck in your investment account instead of cashing it and taking your buddies out to eat, and you bring your lunch to your part-time job instead of spending eight dollars on lunch. If you have credit problems you are not going to pay more in rent or security deposits. Selling, general, and administrative expenses }\\ 2. Why do businesses or individuals considering giving you credit look at your debt to income ratio? When you gamble you need to make sure you never: Spend money that is budgeted for your monthly expenses. It's not the job of those companies to tell you the bad things about their products or services. Which answer is correct about subletting? I'll free up money that could be invested, I'll lower my debt to income ratio, and I'll save a lot of money in interest charges. What is the amount you can safely owe on your card? Why? If you do not pay your loan the finance company can take the car back, True or false? In some cases, more than one statement will report the needed data. This is an example of what? 2. \text{ f. Total assets } & \text{n. Net income }\\ Which statement is true about risk based financing? Retirees are the fastest growing group to go bankrupt. If you invest your money early and often when you are young: You will probably be able to retire early, Is this statement correct? If you use a student loan to pay for college and drop out, the student loan: Stays the same. In a story in module one called "Looking for a Roommate" how much money did one girl lose in the Nigerian scam? Apr. Which two statements give good definitions of financial credit? If you mismanage your checking account by bouncing checks repeatedly or ignoring overdraft notices, what results may happen to you? You should plan on spending 2/3 of your paycheck on rent and household expenses. What choice shows people who are less likely to be hurt by gambling? You decide to attend a meeting of young consumer advocates who will be talking about the problems young people have when they move out on their own. Which statement describes the smartest move, when it comes to paying your accounts, Select the one statement accurately describes credit bureaus, Credit bureaus keep records of your spending habits for 7 to 10 years. True or false? Liquidity is the amount of cash you have plus any other assets that you can quickly convert to cash. If I make a lot of claims on my insurance, my insurance cost will probably go down, Some or all of your expenses related to accidents and some health issues, What are some obligations you must fulfill for an insurance policy to be in effect, You need to make sure you make your insurance payments on time, and you must be accurate and truthful in giving the insurance company any information the company uses to determine their coverage and your premium. Solve tough problems on your own with the help of expert-verified explanations. Which answer is most correct? Why is it important to take a college entrance exam? In fact, too many new accounts usually hurts your credit rating. Start making opportunity cost decisions now. If you have the income to pay off all your bills, you are probably a better risk. \end{matrix} Do you have to file a federal tax return, Requires people to make more money to pay a larger percentage of their income in taxes. They didn't do their homework on the investment and therefore didn't understand the risk, they believed the person trying to sell them an investment rather than doing independent research to confirm that person's information, and they let emotion rather than common sense rule their decisions. You never know when unexpected fees or expenses will hit your checking account. You can apply for scholarships, or apply for a work study program or other jobs that allow you to go to school and work at the same time. Does the company that provided me the payment guideline make more money if I get a larger mortgage, is the payment guideline from a source that does not make money on mortgages, and have I been really honest with myself and using any payment guideline, How much money do people around the world spend on gambling in one year. Norm Derner, Drawing When you fill out a check for a certain amount of money and then sign that check, you are guaranteeing that your account has that much money in it, True or false? This is a definition of what? If the company has 250,000 shares of common stock outstanding, its book value per share would be. The maximum amount of money that you can charge on a credit card is called: Why should you never borrow up to your credit limit on a credit card? What is that belief called? Landlords have rights too. What is a document that is based on the amount of risk taken on a specific outcome, True or false? Checks should be written in pencil so that you can easily correct mistakes. \text{c. Dividends } & \text{k. Adjustments to reconcile net income to net cash provided by operations }\\ Choose the one correct answer. Which of the following is not a right of the landlord, A landlord can't keep all of your security deposit if you do not take out the garbage one day. Bankruptcy can impact your entire life, from your credit rating to your ability to get a job or even your ability to rent an apartment. We spent a lot of time talking about the key habits of millionaires when they were in high school. Which question or questions should you ask yourself when determining how much money you can afford to spend on a mortgage? For most companies, the purpose of advertising is to highlight the good things about the company's products or services. Having good credit impacts what job you get and what you pay for products and services. And you can at times forget to write down a payment you make with your checking account or debit/ATM card. Which of the following statements about your credit report is most accurate? They use credit cards and other forms of credit to keep gambling, they keep increasing the amount of debt in the hope of winning big, and they think about gambling all the time, keep spending money they shouldn't spend, and deny they have a gambling problem. The sales tax you pay when you gas up your car is regressive, Select the correct example of a benefits received tax, The tax that is collected at a tollbooth on a highway, True or false? Because building a relationship with a financial institution makes good sense, What statement best describes a store charge card, Usually, the store card can only be used at the store or other businesses that store may own, Why do you think that we name this module sucker punch choose the one best answer, Because we want you to be aware that credit cards can be as painful as an unexpected punch in the stomach. This is a definition of: Your credit score says most companies will loan you money at 10% interest. If I pay off my entire credit card bill before this date, I do not have to pay interest on the money I have borrowed on my credit card. We talked about the way these expenses impact your budget and your savings. True or false? True or false? The biggest perk or benefit you will receive for donating to a charitable organization is: You can probably write the donation off on your taxes, True or false? Becky Martinez owns stock in GBX Corporation. Utility companies such as phone, electric and gas companies generally do not care about your credit history and will always let you use their services, even if you have bad credit and even if you don't pay them. True or false? Which statement illustrates the fact that good credit helps bring independence? Which of these for choices shows the best critical thinking skills? True or false? Money in your pocket always gives you more options than not having money in your pocket. Leasing usually means you have a much longer agreement. You plan to always pay your card off in full each month before the grace period ends. Which answer is correct? Next Saturday, you have four choices. So you - that's you - have to be on the alert for the sucker punches when you get ready to choose and use a credit card, True or false? Native advertisers are required to show all sides of an issue in articles they publish. What is this called? Cash spent to acquire the building }\\ Then he nearly went broke. Yes, and the brokers do not assume any risk, Which payment guideline would you follow if you were deciding to get a mortgage, This guideline is issued by a group that makes absolutely no money on selling mortgages. You legally declare you can't pay your bills. It is one way to determine trustworthiness. You research cell phone reviews and pay a lot of attention to comments from people who don't have anything to do with the cell phone manufacturer. Renting usually means you have a month to month agreement. You own a credit bureau. True or false? Check the answer identifying the habits we talked about. You loan your cell phone to Paul who runs up your bill. The teller says that the $700 check is on hold for five days. Income tax payable } & \text{ j. What is not impacted by bad credit history? Supplies Seek counseling from a bankruptcy attorney, You owe $2300 on your motorcycle. If you are a person who mistakenly believes you have a better chance to win really big if you keep on gambling. C2. Your renters insurance deductible is $500.While you were at work, someone broke into your home and stole your brand new flatscreen TV which cost $1700. You can choose the credit card with the lowest interest-rate. This company charges you as much as you can, simply because they think you have no other choices. Tomorrow you want to pay a $600 bill with a check. What are some of the factors that would influence your insurance costs? Which answer best defines opportunity cost, The value of the things you have to give up to get something else, Which of these are examples of opportunity cost. Which of the following things will affect your credit score, Skipping payments on your cell phone account, paying your bills on time, and paying your bills late will all affect your credit score, The business that gives you a loan or rents you an apartment is the one in charge of your credit record and credit score. 5. 32-7091;$39.44 Keith Lopez, drawn on Peoples Bank, ABA No. Rent Expense Transactions: Prepare the check stub and Check 42 to pay the bill for advertising. Community college credits never transfer to a four-year institution, True or false? How long you've had an account helps determine your credit score, Why would the length of time you have had a checking or savings account help determine your credit score, Potential lenders, businesses or employers want to see your track record: how you've paid over a long period of time. Your credit report can be checked once a year for free at the major credit reporting agencies, True or false? A college or trade school graduate will make more than $8000 a year more than someone who did not graduate college, True or false? How are your options for the future if you drop out of high school? The lease and all the utilities are in mats name. The credit bureau might lower your credit rating. What answer describes your situation. do many companies like it when you look like a fool? "My Social Security plus what I have put in a regular savings account will cover all of my retirement expenses. We talk in depth about critical thinking skills. Apr. \text{a. \text{d. Income tax expense } & \text{l. Ending cash balance }\\ How much buying power in dollars will you lose in one year because of inflation? 100% of your income after you retire will probably come from Social Security and the companies that employed you. What answer best describes a Nigerian scam, Nigerian scammers nearly always want you to send money back to them. A college degree or a skill-based education, Which of the following will have the most influence on your pay. So, you are less likely to overdraw your account if you always keep $100 balance, You don't keep $100 balance in your checking account, and you overdraw your account a few times which of these is the most likely result, Your financial institution will charge you an overdraft fee every time you overdraw your account, and will probably tell the credit bureaus you have overdrawn your account. Which answer best describes these terms? If the credit bureau's lower your credit rating, you get charged more on interest for loans and credit cards, and you may have to pay bigger deposits for utilities. Many companies like fine print because you can be confused by it and make the wrong decision. Gambling is something you should only do if you have discretionary income, True or false? Many not-for profit organizations will except money, cars, boats, groceries or time as donations, In business to earn money for a specific purpose such as helping others. You have $64,000 in a savings account that pays 2% annual interest in the inflation rate is 3.24%. Accts. Why? If you start investing a little money now you'll most likely have a lot more money than those who start investing later on in life, True or false? True or false? What type of debt is this. Which is the best answer? You have $500 in your account. Because you pay more interest on your debt then you could make on your investments. Choose the right ways to cut your variable expenses. True or false? Tell us which statements about credit cards are correct. You have a significant amount of debt due to medical issue. Which of the following would indicate that a debt settlement company may not be a good one? Because they have poor budgeting skills they do not know how to manage their money. True or false? You want a new cell phone. A company agrees to loan you money at 20% interest. Bad credit takes away your options. What should you do? Anybody can make one payment on time. Good credit equals power. Making you think you are a smart gambler who will not lose money. The balance you see on the ATM machine or online may not include payments that haven't been deducted from your balance. You have been advised by a bankruptcy attorney to file Chapter 13 bankruptcy. When buying a home, what is one of the first items you need to decide? When you have a _________, you are required to manage time well and plan for the future, Compared to just having a high school degree, how much more money will you make per year if you obtain a four year degree, True or false? You have a good credit. Online gambling can be dangerous because: Gambling alone is more dangerous than gambling with friends around you, some online gambling sites are scams, and it's usually impossible to get your money back if you're scammed, and some online gaming sites target young people, even though that is illegal. Prepaid Insurance Accts. No. ", No. You are very responsible. Bought supplies on account from Palm Supply, $500.00. One of the safest and easiest investments for young people is: NCUA or FDIC insured certificates of deposit, What is the main risk you face when you buy stocks as investments, The value of your investment fluctuates with the profits and losses of the company and you have virtually no control over that fluctuation, True or false? Which answer is correct? Not for profit organizations do not have to pay taxes on their income. If the rate of inflation is higher than your interest rate on your savings account you are gaining buying power, How much will a $1.42 loaf of bread cost in 25 years based on inflation, You can't figure because you don't know the inflation rate, Negative GDP for two consecutive quarters. If you make a late payment on a 0% interest card you're responsible for paying the entire interest from the time you opened the card, Which statement is true about savings plans, It doesn't do much good to have a savings plan if you don't know how to budget your money, In this module, we say a good money burn means you have spent money wisely and bad money burnt means you have spent money you did not need to spend tell us which answer she is the best good money burn, You shop around and buy a pair of the exact same designer jeans at a thrift shop and they cost virtually nothing, By not negotiating the price of your first car purchase, you have a $1000 bad money burn. You received a second option from a good credit counselor and both the attorney and the counselor are in agreement. What would be the smart thing to do before applying for college or trade school? With a credit card you are always borrowing money, Which of these choices shows the smartest thinking, I use my credit card to build my credit and for convenience. 84-268; $22.95 Marjorie Luke, drawn on Horizon Federal Savings and Loan, ABA No. If you've lost quite a bit of money, then you're automatically do to win eventually. Having a ________ normally means you were just clocking in and out. Credit card companies love you when you pay minimum payments each month because You're throwing your money away by paying extra interest each month. Which of the answers below show bad money burns? Rohe Then you, in addition, earn interest on the interest. No. Is this statement true? Life insurance can usually help you with which of these cases? Phishing scams cannot hurt you if you don't respond to them. Which of these normally apply to people who have a career instead of a job? Risk based financing is the way that lenders determine your interest rate for a loan based on how likely you are to repay that loan, Which one of the following statements about risk based financing is false, Risk based financing is illegal and cannot be used by companies. But you do not have to move out until your rental agreement expires, The landlord is not responsible of keeping the temperature in the home at a reasonable level. \begin{matrix} The credit card company charges 28% annual interest on your average balance. What are some signs of a person with a serious gambling problem? It is stupid to trust an ATM machine to tell you the correct balance in your account. what is foolproof's definition of looking like a fool? You have $400 in your checking account, and deposit a check for $700. Which statement is true about your credit history and score? They are wildly more expensive than writing checks, What is true about check cashing services, Many check cashing services are rip offs because they charge huge fees, check cashing services do not help you build credit, and most check cashing services are wildly expensive compared to bank bills with a checking account, Which of the following statements is true about an ATM card, An ATM card allows you to draw money from your checking account and/or savings account, Which of the following statements is true, A debit card normally has a MasterCard or Visa logo on it, ATM cards and debit cards are much alike. Some financial institutions can be really bad about putting unexpected charges on your checking account. True or false? 7. Your credit history and your credit score hold the key to your financial future, Why do companies check your credit rating, Because many companies believe your credit history lets them know if you would be a good or bad employee, True or false? You can usually lower your variable expenses more easily than you can lower your fixed expenses. 9. Most businesses only tell you the good things about their product or service. True or false? What effect does Strong String's reported net income have on Wendy Day's financial statements? True or false? Definitely! True or false? 84-2242; $67.45 On August 15 Peabody received the July bill from Northeast Telephone for$214.80. 3. What counts is how you pay overtime. True or false? But a smart customer knows that the insurance agents job is normally to sell, not necessarily to tell you if their insurance coverage costs more than other insurance coverage. Norm Derner, Capital If you have a credit card limit of $1000, you should never carry a balance of more than $800, What could happen if you do not shop around for the right credit card company, Your interest rate could increase even though you pay your bills on time, True or false?