MONEY MANAGEMENT

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MONEY MANAGEMENT

• UNIT 3 Test Review
• Budgeting and
• Managing a Checking Account

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CHAPTER EIGHT

• QUESTION
• A plan for spending and saving money

• ANSWER
• Budget

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CHAPTER EIGHT

• QUESTION
• Name the three major categories included in most
  budgets?

• ANSWER
• Income, Savings, and Expenses

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CHAPTER EIGHT

• QUESTION
• Amount of money earned before taxes is known as?

• ANSWER
• Gross Income

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CHAPTER EIGHT

• QUESTION
• Amount of money earned after taxes is known as?

• ANSWER
• Net Income

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CHAPTER EIGHT

• QUESTION
• Assuming a Gross Salary of 100,000 and a tax
  rate of 25
• What is your Gross Income?
• What is your total income tax bill?
• What is your Net Income?

• ANSWER
• Gross Income 100,000
• Income Taxes 25,000
• Net Income 75,000

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CHAPTER EIGHT

• QUESTION
• Unspent income is known as?

• ANSWER
• Savings

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CHAPTER EIGHT

• QUESTION
• What are three types of savings?

• ANSWER
• Short-term (new shoes), Long-Term (house),
  Retirement, Emergencies

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CHAPTER EIGHT

• QUESTION
• A cost to meet a need or pay a debt.

• ANSWER
• Expense

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CHAPTER EIGHT

• QUESTION
• There are three types of expenses? What are they?

• ANSWER
• Fixed, Variable and Discretionary

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CHAPTER EIGHT

• QUESTION
• A cost that occurs regularly and doesnt vary in
  amount is known as a
• Give two examples

• ANSWER
• Fixed Expense
• Rent, Car Payment etc

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CHAPTER EIGHT

• QUESTION
• A cost that occurs regularly but varies in amount
  is known as a
• Give two examples

• ANSWER
• Variable Expense
• Phone, Electricity, Groceries etc

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CHAPTER EIGHT

• QUESTION
• A cost that is determined by personal wants and
  needs
• Give two examples

• ANSWER
• Discretionary Expense
• Vacations, Entertainment, Clothes

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CHAPTER EIGHT

• QUESTION
• The condition of not being able to have ALL of
  the good and services one wants.

• ANSWER
• Scarcity

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CHAPTER EIGHT

• QUESTION
• The value of what you had to give up to pursue
  another option is known as?

• ANSWER
• Opportunity Cost

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CHAPTER EIGHT

• QUESTION
• Giving up some of one thing to have more of
  another is known as

• ANSWER
• A tradeoff

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CHAPTER NINE

• QUESTION
• Banking service where you deposit money into it,
  and can then write drafts to people or businesses
  to pay off money owed?

• ANSWER
• A checking account

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CHAPTER NINE

• QUESTION
• There are a lot of questions you should ask
  before opening up a checking account? Name one?

• ANSWER
• Minimum balance? ATM card? Debit Card? Direct
  deposit? Free Checks? Etc

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CHAPTER NINE

• QUESTION
• A check that the bank has already processed and
  paid out?

• ANSWER
• Cancelled check (or cleared check)

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CHAPTER NINE

• QUESTION
• When you dont have enough money in your account
  to cover a check?

• ANSWER
• Overdraft (or bounced check)

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CHAPTER NINE

• QUESTION
• When you know you dont have enough money to
  cover a check but you send it anyway, hoping to
  make a deposit before the check clears.

• ANSWER
• Floating a check

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CHAPTER NINE

• QUESTION
• A form that you fill out when you open your
  checking account. Provides the bank with a record
  of how you sign your name.

• ANSWER
• Signature Card

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Parts of a check
NAME ADDRESS
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CHAPTER NINE

• QUESTION
• A form you fill
  
  out when you are depositing money into
  your checking account.

• ANSWER
• Deposit Slip

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CHAPTER NINE

• QUESTION
• A personal record of all your deposits and
  withdrawals should be kept in your

• ANSWER
• Checkbook Register

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CHAPTER NINE

• QUESTION
• Process of comparing your bank statement to your
  checkbook register to insure that the numbers
  match.

• ANSWER
• Reconciling your account (or balancing your
  account)

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CHAPTER NINE

• QUESTION
• What are examples of logical reasons your
  checkbook balance doesnt match your bank
  statement balance?

• ANSWER
• Outstanding checks (you wrote them but they
  havent been cashed yet)
• Outstanding deposits (you deposited them after
  the bank statement was mailed)
• ATM withdrawals or service fees that you forget
  to record in your checkbook register

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CHAPTER NINE

• QUESTION
• You cannot cash a check unless it has been
  ______________________.

• ANSWER
• Endorsed

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CHAPTER NINE

• QUESTION
• What type of endorsement is this?

• ANSWER
• Blank Endorsement

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CHAPTER NINE

• QUESTION
• What type of endorsement is this?

• ANSWER
• Restrictive Endorsement

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CHAPTER NINE

• QUESTION
• Special ATM Card that allows you to pay for
  transactions right out of your checking account
  by simply swiping the card

• ANSWER
• Debit Card

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STUDY, STUDY, STUDY

• Ok. These were the easy ones! You have two
  chapters of notes to review!
• Dont forget to study!