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Flashcards in Marriage and Family State Test Deck (49)
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1

what is financial planning

setting goals and developing a plan for finances

2

financial institutions

bank, credit unions and savings and loan firms

3

what are FDIC, SAIF, and NCUA

insurance for banks, credit unions and savings and loan

4

what are ooutstanding checks

checks that havent cleared the bank

5

what is overdraft protection

an instant loan that guarantees checks up to a specified amount

6

debit vs. credit card

debit card transactions are deducted out of checking, credit cards are loans

7

what is the cost of credit

the interest you pay to use other's money

8

what is a credit limit

the max amount you can borrow

9

what does APR stand for

annual percentage rate

10

credit history/credit report

a record of your personal financial transactions used to determine risk. kept by credit bureaus

11

what is bankruptcy

two types: chapter 7 and chapter 13

12

what is the Fair Credit Reporting Act

law that says you can see your credit report and dispute anything that is false

13

what is interest

the amount you pay for the money you borrow

14

what is the principle loan amount

the original amount you borrow

15

what is a cosigner

a person who accepts responsibility to pay the loan if you default

16

what is a flexible expense

expenses that change from month to month
ex. groceries, recreaction

17

fixed expense

expenses that stay the same every month

18

review and revise or update your budget

update and make changes to spending plan as needed

19

recommended percentages for budgeting household expenses

housing 30-35%
food 10-15%
savings 10%
transportation 15%

20

savings

money set aside for emergencies or short term needs

21

PYF

pay yourself first 10% before anything else

22

emergence funds

money saved that is easily accessible in case of an emergency

23

3 major taxes

federal
state
local- property and sales

24

1040EZ

easiest tax form to do

25

compounding interest

earning interests on interest
(principle*interest*interest)

26

rule of 72

how long it takes to double your money
72/the interest=how long it takes to double

27

interest

percentage charged to borrow money. (higher rate=more cost)

28

risk and return principle

the higher the investment risk the higheer the investment return

29

stocks

you have part ownership in a company

30

liquidity

an asset that can be easily converted into cash