Personal Finance Mid-Term Review Game Financial Planning Basics Compound Interest Cash Flow and Taxes Banking and Credit Miscellaneous 100 100 100 100 100 100 100 100 100 100 100 100 100 200 200 200 200 200 300 300 300 300 300 400 400 400 400 400 500 500 500 500 500

The Answer is: Fundamental beliefs about what is important that serve as a base for financial goals.

The Question is: What are values?

The Answer is: Phrase used to indicate that money is saved as soon as it is earned, before you get a chance to spend it.

The Question is: What is “pay yourself first”?

The Answer is: A financial statement used to assess a person’s financial well-being.

The Question is: What are net worth (balance sheet) or cash flow (income and expense) statements?

The Answer is: Minimum number of months of expenses recommended to be set aside for emergencies.

The Question is: What is three months?

The Answer is: The next best alternative that someone could have chosen to spend, save, or invest their money.

The Question is: What is opportunity cost?

The Answer is: Financial principle that tells how long it will take to double a sum of money at a certain interest rate.

The Question is: What is the “Rule of 72”?

The Answer is: One of three ways to calculate the time value of money.

The Question is: What are: Using charts in the book appendix, financial calculators, and mathematical formulas?

The Answer is: A series of equal payments or deposits.

The Question is: What is an annuity?

The Answer is: Interest rate required to double a sum of money in 9 years.

The Question is: What is 8%?

The Answer is: Today’s value of an amount to be received at a future date.

The Question is: What is present value?

The Answer is: Type of income earned on investments for which taxes are not owed until a future date.

The Question is: What is tax-deferred income?

The Answer is: Tax rate at which your last dollar of income is taxed.

The Question is: What is a marginal tax rate (bracket)?

The Answer is: Income remaining after taxes and other payroll withholding deductions are deducted.

The Question is: What is disposable income?

The Answer is: A dollar-for-dollar subtraction from tax liability for expenses such as child care and raising a family.

The Question is: What is a tax credit?

The Answer is: Type of tax that takes a smaller percentage of a person’s income as income rises.

The Question is: What is a regressive tax?

The Answer is: Example of a depository institution used to hold cash assets.

The Question is: What is a commercial bank, savings and loan, or credit union?

The Answer is: Type of credit where borrower repays the amount owed in equal, usually monthly, payments.

The Question is: What is installment credit?

The Answer is: Figure used to compare earnings on bank accounts based on interest received on a $100 deposit for a 365 day period.

The Question is: What is the annual percentage yield (APY)?

The Answer is: The total cost of credit on an annual basis.

The Question is: What is the annual percentage rate (APR)?

The Answer is: Type of credit card backed by a savings account opened with the financial institution that issues the card.

The Question is: What is a secured credit card?

The Answer is: One of three ways to calculate time value of money problems.

The Question is: What are mathematical formulas, financial calculators, and interest factor tables.

The Answer is: A recommended strategy to reduce the risk of becoming an identity theft victim.

The Question is: What are checking credit reports, securing incoming/outgoing mail, shredding documents, not divulging information to callers, etc.

The Answer is: Name for the practice of sending e-mail links to fraudulent Web sites in order to trick people into divulging personal information.

The Question is: What is phishing?

The Answer is: One important thing that Roy Miller, a.k.a., the Wealthy Barber, taught his students.

The Question is: What is “pay yourself first,” the magic of compound interest, PITA factor investments, invest 10% of earnings for long-term growth, etc.?

The Answer is: Something learned from doing the PowerPay assignment.

The Question is: What is the time and interest savings from PowerPay, the high cost of interest on loans and credit cards, the impact of sequencing of debt repayment?