Financial Literacy Flashcard

Front

A budget is: spendable income, a well-written spending plan, your assets, take home pay

Back

a well-written spending plan

Front

To withhold more income in order to receive a larger tax refund is:

Back

giving the government an interest free loan

Front

Spendable income is:

Back

the amount left after withholding taxes and FICA

Front

Housing should be what percentage of your budget? Options: 80%, 100%, 15%, 33%

Back

33%

Front

An emergency fund should have how much in savings: two weeks of spendable income, a year of FICA, two months of your 401K contributions, 3-6 months of fixed income to cover your expenses

Back

3-6 months of fixed income to cover your expenses

Front

An easy way to save money without spending is to: ask your employer to automatically direct deposit into a savings account

Back

ask your employer to automatically direct deposit into a savings account

Front

A student loan is: an IRA, good debt, a spending plan, bad debt

Back

good debt

Front

When purchasing a car it is best to: put 20% down, buy a used car, to buy one with low mileage

Back

all of the above

Front

To get out of credit card debt: pay off the low interest rate credit cards first, put all your fixed expenses on the credit card with the most available, pay off the highest interest rate card first, none of the above

Back

pay off the highest interest rate card first

Front

A budget is only needed when: you don't live with your parents, you have a job, you get into credit card debt, always

Back

always