the amount of income left after taxes and other deductions are taken out of your gross pay, John's company will match his pre-tax contributions to the company's retirement plan, known as, A company offers a defined contribution plan (401K) which means upon retirement the employee receives. A combination of whole life insurance and term life insurance. Capital gains on investments held for over one year will be taxed at a lower rate. This is known as trading stocks. A global electronic marketplace for buying and selling securities, and technology stocks. Expenses are anything you spend money on, from a pack of gum to your monthly cell phone bill. the total amount contributed plus investment earnings. Negative financial information (excluding bankruptcy) can stay on your credit report for: a. An individual retirement account designed for individual savers. The government defines income as any form of money, property, or services that you receive. a personal loan without assets to cover the loan amount. Test. Over 25,000 people – high school students through adults – have completed this test. Process of converting readable data into unreadable characters to prevent unauthorized access. A payment type similar to a debit card that allows you to make electronic purchases but requires that you. In investing terms, the chance you take that an investment may or may not result in a return. Key Concepts: Terms in this set (12) income. Student loan, Age, gender, neighborhood, marital status, but not your health. Pawn loans are a quick, easy and expensive way to borrow money without a credit check or hassle. Personal Financial Literacy Test Review DRAFT 9th - 12th grade is a loan that is issued and supported only by the borrower's creditworthiness, rather than by any type of collateral. Terms in this set (6) Payroll tax. This refers to an interest rate that is based on an interest rate index, which means the rate can change over, A tax form employers send to each of their employees listing how much money that individual made during. Annual percentage yield is the effective annual rate of return taking into account the effect of compounding interest. Gravity. Over 83,000 people – high school students through adults – have completed this test. Costs associated with ownership of a house, a car, or a similar purchase that are the owner's responsibility. A transfer of your existing credit card balance to another credit card. Loans are based on the value of your collateral, not your credit rating or pay schedule. A tax form an employee fills out that tells the IRS how much money to take out of each of their paychecks. What is important for someone with a credit card to know? With a Roth IRA, the money you contribute is, Many states charge sales tax. Match. a profit from the sale of property or of an investment. Created by. Is a personal check written by a bank account holder, drawn on the account and guaranteed by the bank. is the effective annual rate of return taking into account the effect of compounding interest. A clear understanding of your personal values will: enable you to make choices that reflect what is important to you. Student loan debt will not be dismissed by filing for bankruptcy unless one can prove undue hardship (very hard to do). Try out our FREE loan calculator tool! Can refer to physical items (like a house. Interest rates are higher on these types of student loans. A person's debt-to-income ratio is determined by dividing total monthly debts by gross monthly income. How long can bankruptcies stay on a credit report? A premium covers a set, A card that allows you to put a specific amount of money onto them. If loan payments are not made, assets can be seized and sold by banks. 2 years b. In investing terms, another name for a Stockholder. A lease is a rental agreement. This is the main form students use to apply for federal. What insurance should she get first. A detail of all the fees that may be charged on a bank account. If you bank in Virginia, why does a check from Illinois take longer to cash? These plans can invest in either annuities or mutual funds. Property owned by an individual or organization that has some value. A Chapter 11 bankruptcy case allows a business to keep running while it finds ways to reduce and arrange payment of its debts. is a system of transferring money from one bank account directly to another without any paper money changing hands. If a couple was to wipe out their debt in terms of bankruptcy they would file _______ bankruptcy, Chapter 7--simplest and most common form of bankruptcy. Where is the least risky place to invest your money? National Credit Union Administration, insures the deposits of members. s a retirement plan for specific employees of public schools, tax-exempt organizations and certain ministers. Insurance, Credit bureaus, also called credit agencies or credit reporting agencies, are companies that collect credit, A credit card is a payment type that does not automatically draw money from your account. An agreement where your rental payment goes towards owning the property later on. Identify thieves use another person's personal information in order to steal that person's. A fixed fee that an individual pays for specific medical services, like a visit to the doctor's office. The greater the compounding frequency, the more often, These combine several student loans into one bigger loan from a single lender, which is then used to pay off, When a product or service is illegally used to deceive you into sending money or signing up with a phony. PLAY. tax. this ratio is one way lenders, measure an individual's ability to manage monthly payment and repay debts. The largest stock (securities) exchange in the world. is the unfair, deceptive, or fraudulent practices of some lenders during the loan origination process. This formula is useful for understanding the nature of compound interest. Averaged indexed monthly earning over 35 years in which you earned the most. The bank verifies that the signature is genuine and that the check writer has enough money for the transaction, and sets aside the full amount of the check for when it's cashed or deposited. is a collateralized loan backed by an asset. In this tax system, you are taxed on the money you earn, Shares of ownership in a company. Down payments are usually provided at the time. Usually expressed as a. A paper payment type. Whenever you take out a loan or a, The amount of money that you are able to charge to a credit card. This can be any item of value that is accepted as an alternate form of repayment in case of default. THE PERSONAL FINANCIAL LITERACY EXAM IS USED FOR THE FOLLOWING EVENT: PERSONAL FINANCIAL LITERACY PFL These test questions were developed by the MBA Research Center. Learn vocabulary, terms, and more with flashcards, games, and other study tools. A claim is the request you make to your insurance company for payment of the benefits allowed by your, Compound interest is interest that's generated not only from the money you put into an account, but also, The number of compounding periods in one year. Which are examples of liabilities (debt)? It may take up to 1 business day for your Teacher Account to … Lenders use this ratio to decide if more debt can be taken on by the borrower. This means when you pay for something, the sales tax is added to the total, A type of savings vehicle in which you earn interest on the principal, usually without minimum balance, A savings plan is a way to save money for the long-term, which for most people means. If you exceed this limit, your purchase may, A credit report is a record that details a person's credit history. The $30 difference between what you pawned the watch for and what you redeemed it for is: You have a tax-deferred retirement plan. Most states require it by law. A retirement account offered through an employer, where an employee can contribute money from his or her, A retirement account similar to a 401(k) plan, but offered by non-profit organizations, like universities or. An alert put on your credit file to help prevent additional identity theft. The amount of debt a person or a household has in relation to his or her income. Allows you to have money come out of your account, Also known as ACH (Automatic Clearing House) transfer. stock that entitles the holder to a fixed dividend, whose payment takes priority over that of common-stock dividends. Home » Uncategorized » personal finance quizlet unit 1 personal finance quizlet unit 1. What is true? The signature or account information included on the back of a check acknowledges that the intended recipient received the document and deposited it. Financial Literacy Vocabulary words. When interest rates increase, what happens to stock prices? mortgage loan, car loan, credit card debt, The following are examples of collateralized loans because the lender has something to take back (repossession) if a person doesn't make the payments, Mortgage loan (house), car loan, jewelry (pawnshop loan) boat. A certain amount of money you must have in some bank accounts at any given time to avoid being penalized, Refers to how much money an investor could potentially earn from an investment. A degree awarded by a college or university for completing four years of undergraduate studies. Payday lenders offer loans, with payment due in full at the, A history of the payments you have made on all credit you have obtained, which affects your, A grant awarded based on financial need by the U.S. federal government to help students pay for higher. Goals that are specific, measurable, attainable, realistic, and time-bound. It lays out the terms for the property you'd like to rent: how much you're going, A type of insurance that ensures that another person (called a beneficiary) will be financially protected if you. issued by a state or locality, they are federally tax-free. FAFSA is the Free Application for Federal Student Aid. It is composed of a Board of, Federal Student Loans are offered directly to students by the government. you borrow a specific dollar amount from a lender and you agree to pay the loan back, plus interest, in a series of monthly payments. Tammy bought 100 shares of Widget stock for $30 a share. A degree granted after two years of study, often by a community or junior college. Test. Brushing up on some basic financial … A right to keep possession or property of any individual until the money they owe is paid, The higher the insurance premium the lower the, If a company splits its stock 2 for 1 the number of shares for the stockholders double and the price per share is cut in half, Securities and Exchange Commission protects investors and regulates the stock market. A secure low risk investment. Often used to complete a transaction made with a debit card. Also known as ACH (Automatic Clearing House) transfer. A loan of cash you obtain with a credit card. Learn vocabulary, terms, and more with flashcards, games, and other study tools. The most common form of bankruptcy. When money is taken out of a bank account (also known as a 'withdrawal'). It is more expensive them term life insurance. STUDY. Thomas predicts a _____ market. A tax that pays for the retirement benefits for people who are currently retired and for the future retired, A Social Security number (SSN) is a 9-digit number issued to U.S. citizens, permanent residents, and temporary, One of the most common types of federal student loan, awarded based on limits that are set for any individual, Most states charge income tax on all its residents. Over 25,000 people – high school students through adults – have completed this test. What is the safest way to endorse a check? Put your bank account number on the back of the check, sign your name under it and write "For Deposit Only". You don't need to be a money maven to make smart money decisions, but you do need to know a thing or two about income, taxes, and safeguarding your hard earned money. Another name for the interest rate charged on the balance of a credit card. If you want more money to invest, you should, reduce your variable expenses (expenses that change from month to month). The alert stays on your file for 90 days, An interest rate is the percentage of interest you either make or pay on a principal (like 1% or 5%). If you have direct deposit and $250 is direct-deposited into your checking account, when can you withdraw $100? An act which requires lenders to inform borrowers of all direct, indirect and true costs of credit. What type of insurance policy would you recommend for Wendy? If you had money invested at 1% how long would it take your money to double? A part-time employment that can be awarded as part of a federal financial aid package. to qualify for this type of home loan you must meet the income guidelines. You will have to pay the full amount if your neighbor doesn't. A retirement account designed for individual savers that offers tax, Stands for the Internal Revenue Service. a tax on real estate or personal … Owning stock in, This is a type of federal student loan on which the government pays the interest that accrues while a student, An expense incurred by a taxpayer that is subtracted from gross income when the taxpayer computes his or, This is a type of federal student loan on which the government does not pay the interest that accrues while a. FICO is an acronym for the Fair Isaac Corporation, the company that developed the FICO score, which is the, Brackets that determine, based on how much income an individual makes, what percentage of that income, The federal government charges income tax on all its residents. Enter in loan rates and terms and see how much you may spend in interest over time. calculated by: maximize compounding on their investments, while at the same time minimize it on their loans. Spell. It is also called liquidation bankruptcy because some of a debtor's property may be sold (liquidated) to satisfy creditors. is a fee paid to the government in return for goods or services such as roads and police protection (payroll, sales, or property) ... Quizlet Live. One big part of financial literacy is understanding insurance, Tyson says. the setting of the money supply by policymakers in the Federal Reserve bank. Lucy is young and single and has no insurance. Thank you for registering for an NGPF Teacher Account! Balance transfers are typically used when, A bond is basically a loan, except that in this case, you're the lender. A mortgage is a type of loan used to finance the purchase of real estate. It can be filed by businesses or individuals who are unable to pay their debt. A transfer of funds from one account or individual to another through a bank's website or mobile application. Money that is backed by the full faith and credit of the government that issued it. Premium Investing Newsletters. consumer tax on a specific kind of merchandise, such as tobacco. What is true about a Treasury Bill (T-Bills)? A tax that pays for health care for people aged 65 and over. What would earn you the most interest--interest compounded yearly, quarterly, monthly or daily? Created by. Financial Literacy Pre Test Flashcards | Quizlet Financial Literacy Practice Tests Reveal Level of Understanding Students can absorb only so much information from the financial literacy … This is a broader test that measures their ability to earn money and manage their personal finances. a goal that is specific, measurable, achievable, results-focused, and time- bound. Use the calculator to compare loans from different financial institutions and improve your financial literacy… Learn vocabulary, terms, and more with flashcards, games, and other study tools. Specific, measurable, attainable, realistic, timely. Start studying Financial literacy Test. The test should be a valuable tool for as-sessing what students know about the basics of personal … If you had money invested at 12% how long would it take your money to double? This activity was created by a Quia Web subscriber. Start studying AES Personal Financial Literacy Module Test. When money is taken out of a bank account (also known as a 'debit'). The W!se Financial Literacy Ambassador Award is a $4,000 monetary award distributed to four students ($1,000 each) in our national network (49 States and Guam) who earn at least 95% on our Financial Literacy Certification Test … Personal Finance. A savings plan offering tax benefits that can be used for any qualified educational expenses. Chapter 11 bankruptcy is a complicated type of bankruptcy that reorganizes the debtor's finances, usually reducing the amount of debt owed and changing debt repayment terms. You pawned a watch for $150. Instead, it, Credit history is a record of a person's borrowing and repayment activity. A common financial service used by many consumers. Managing money continuously through life in order to reach your financial goals. A temporary display of output seen on a monitor. department store and credit cards, also known as revolving credit. Personal Financial Literacy Pretest Answerstools. Bankruptcies can be reported for 10 years from the filing date, Chapter 13 is the most popular form of bankruptcy in the United States for ordinary people. Take the National Financial Capability Test This 30 question test measures financial literacy and income knowledge (career & entrepreneurship). The largest stock market or secondary in the world. This is a broader test that measures their ability to earn money and manage their personal finances. life insurance that pays a death benefit if the policyholder dies within a specific time period but has no remaining value at the end of this time. Credit rating of bond, inflation rate, interest rate, You can borrow money from your 401K, but you will have to make payments to pay it back. is a legal process which happens when a person or an organization does not have enough money to pay all of its debts. This 30 question financial literacy quiz for students measures financial literacy income knowledge (career & entrepreneurship). A tax form filled out by an individual and filed with the IRS that determines the amount of income tax owed in a single year. Americans are using debit cards, credit cards, and checks instead of cash. Thomas thinks the stock market will go up by 20% in the near future. a tax paid by employers (boss) based on employees' wages (worker- earn money). MelissaPena09. You co-signed a loan for your neighbor. the money that remains after paying for taxes and necessities. What kind of investment is BEST when you think interest rates will go up in the near future? PLAY. Gravity. health, accident or disability insurance. a set of personal and financial goals, along with steps and a timeline for reaching, plans for how you will pay for your personal goals, things you expect to achieve within one week to one year, things you wish to achieve in the next 2 to 5 years, things you expect to achieve more than five years from now, a visual display of how long it will take to achieve each phase of a plan, a standard to which other things are compared or by which they are measured, a professional consultant who provides financial advice for a fee or commission, a common internet scam that uses email messages to deceive you into disclosing personal information, the use of your personal information by someone else without permission to commit fraud or other crimes, There was a demand of the upper class for jewelry and pottery which were considered this kind of possession, a document that provides information about an individual's current financial position and presents a summary of income and spending, a financial statement that measures a person's cash inflows and outflows, The difference between personal assets and personal liabilities. 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