Scribd
Upload
3 views2 pages

Unit3 Study Guide Update

This study guide covers essential topics in personal finance, including budgeting, income, banking, investing, credit, and miscellaneous financial practices. Key concepts include the 50-30-20 budgeting rule, the difference between needs and wants, and the importance of credit scores. It also addresses various types of insurance, investment strategies, and financial planning tools like IRAs and FAFSA.

Uploaded by

hbmcf285
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
3 views2 pages

Unit3 Study Guide Update

This study guide covers essential topics in personal finance, including budgeting, income, banking, investing, credit, and miscellaneous financial practices. Key concepts include the 50-30-20 budgeting rule, the difference between needs and wants, and the importance of credit scores. It also addresses various types of insurance, investment strategies, and financial planning tools like IRAs and FAFSA.

Uploaded by

hbmcf285
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Unit 3 Study Guide: Personal Finance

Directions: THis study guide is designed to provide you with information to review for the upcoming exam.
Answer fully and completely.
Budgeting
a. Parts of personal budgets
Savings, needs (rent, gas, groceries, etc.), and wants (movies, eating out, shopping, etc.)
b. Wants vs. Needs vs Savings Ratios
50% for needs, 30% for wants and 20% for savings
c. Benefits of saving early
Having money for unexpected emergencies, can retire earlier, and having more money in the long run.
d. Debt-to-income ratio suggestions
--
e. What is an impulse purchase?
A purchase made from a sudden urge, without planning to buy that product.
f. 50-30-20 Rule and the recommendations for each
--
g. Simple vs. Compound Interest
--
h. Needs vs. Wants in relation to budgets
Needs are necessities, such as rent and groceries, while wants give utility, such as clothes, and eating out.
i. How do you lower monthly payments on vehicles?
--
j. What’s the difference between buying and leasing?
-

Income/Wages
a. Net vs. Gross income
--
b. Wages
--
c. Income Tax/deadline
--
d. What is a 1040? What is the criteria for filling?
--
e. W4’s and W2’s
--
Banking
a. How to protect yourself against fraud when making online transfers
-
b. Checking vs. Savings Accounts
-

Investing
a. Interest
-
b. Dividends

c. Bonds

d. Different types of Investment Portfolios (Risk vs Situation)


e. IRA and Roth IRA pros and cons

f. What is a risk management plan?

g. CD’s (Certificate of Deposit)

h. 401 (K)s

i. Mutual Funds advantages/disadvantages

Credit
a. Importance of Credit Report

b. Factors used in determining a consumer’s credit score

c. What do you do if you find an error in your credit report?

d. What’s the best way to establish a good credit rating?

e. FICO credit scores

Miscellaneous
a. Good practices for making purchases online.

b. Who should have life insurance?

c. What is rental insurance?

d. General Health insurance standards

e. Pros and Cons of purchasing insurance

f. Auto Insurance (Liability & Full Coverage)

g. How to pay for college

h. What is the purpose of a Cover Letter?

i. What is the purpose of a Resume?

j. Parts of a Cover Letter

k. Parts of a Resume

l. Inflation & Shrinkflation

m. What is FAFSA?

You might also like