Personal Financial Literacy Chapter 1 Created by Educational Technology Network. www.edtechnetwork.com 2009

Vocab Topic 2 Topic 3 Topic 4 Topic 5 10 20 30 40 50

Question 1 - 10 A legal process in which a court takes over some of the finances of a person who is unable to pay his or her bills.

Answer 1 – 10 What is Bankruptcy?

Question 1 - 20 Cost of pursuing one option instead of another expressed as the value of the activity you gave up.

Answer 1 – 20 What is Opportunity Cost?

Question 1 - 30 Something owned that can be rapidly converted to cash without a risk of significant loss.

Answer 1 – 30 What is Liquid Asset?

Question 1 - 40 Financial issues that can affect an individual

Answer 1 – 40 What is Personal Finance?

Question 1 - 50 The process of planning every aspect of personal finances.

Answer 1 – 50 What is Personal Financial Planning?

Question 2 - 10 This is used to protect your assets.

Answer 2 – 10 What is insurance

Question 2 - 20 This is the amount of money you can have saved by retirement if you start saving now.

Answer 2 – 20 What is over a million dollars?

Question 2 - 30 How many Americans live pay check to pay check?

Answer 2 – 30 What is most of them?

Question 2 - 40 Money taken from a paycheck by the government.

Answer 2 – 40 What are taxes?

Question 2 - 50 A powerful tool that can be used to help increase wealth but when misused can lead to long lasting financial difficulties.

Answer 2 – 50 What is credit?

Question 3 - 10 A savings account is what type of asset?

Answer 3 – 10 What is liquid?

Question 3 - 20 You went to the movies, which cost $10, instead of working. You would have made $25. What is the opportunity cost?

Answer 3 – 20 What is $35?

Question 3 - 30 What % of people will have a need for emergency funds at some point in their life?

Answer 3 – 30 What is more than 50%.

Question 3 - 40 This is the certification that a financial planner would have.

Answer 3 – 40 What is CFP or CPA ?

Question 3 - 50 This can be a valuable tool for financial planning.

Answer 3 – 50 What is the internet?

Question 4 - 10 Assuming you drive 4,000 miles per year and gas is $3 per gallon, how much would your gas cost for a year for a car that gets 25 miles per gallon?

Answer 4 – 10 What is $480.

Question 4 - 20 Donating some of your money or time to worthy causing is called what.

Answer 4 – 20 What is charitable giving?

Question 4 - 30 Who is responsible for judging the quality of financial advice you receive?

Answer 4 – 30 Who is YOU?

Question 4 - 40 Ryan worked 40 hours during the first week at his job and made $9 an hour. His paycheck was $330.00. How much did his employer withhold for taxes?

Answer 4 – 40 What is $30.00

Question 4 - 50 Justin is skipping work to go swimming. He would have worked 4 hours at $10/per. The gas for the trip to the lake will be $8. What is his opportunity cost?

Answer 4 – 50 What is $48.

Question 5 - 10 What is the opportunity cost of going to the football game on Friday night instead of working at the mall when you make $7.50 an hour and usually work 6 hours? (Ticket for game is free)

Answer 5 – 10 What is $45.00?

Question 5 - 20 Assume you need to save $2,000 to buy a used car in 18 months. How much do you need to save every month to accomplish your goal?

Answer 5 – 20 What is $111.11 or $112.00

Question 5 - 30 If you decide to study 4 hours more a week during your junior year (32 weeks) with the expectation of getting a $2,000 scholarship to college, how much is your study time worth per hour?

Answer 5 – 30 4 X 32 = 128 hours 2000/128 = $15.625

Question 5 - 40 Assume you drink 8 sodas per week and they cost $1.59 each. How much money can you save over the course of a year if you opt to save the money instead?

Answer 5 – 40 8 X 1.59 = 12.72 12.72 X 52 = $661.44

Question 5 - 50 The more education you have, the higher your __________________.

Answer 5 – 50 What is Salary or earning potential?