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| Opportunity cost refers to |
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| trade-offs when a decision is made |
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| Career planning is part of the ________ component of financial planning. |
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| Financial strategies refer to |
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| courses of action to achieve financial goals |
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A financial plan is a list of a family’s spending for the next month. |
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A major purpose of personal financial planning is future economic security. |
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Savings and investment programs are the main method for achieving financial goals. |
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Personal financial planning starts by creating a plan of action. |
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| The final step in the financial planning process is to |
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| evaluate and revise your actions |
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Inflation reduces the buying power of a dollar. |
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The purpose of a screening interview is to reduce the number of candidates for a job to a workable number. |
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| A(n) ____________________ interview is designed to judge the potential of final candidates for a job position. |
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| Professional associations would be most helpful in career planning by |
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| providing information on training for a career area. |
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Education level is a major influence on a person’s potential earning power. |
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| The item least likely to be included on a résumé is |
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An informational interview has the purpose of obtaining employment in a specific job position. |
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A chronological résumé is most appropriate for individuals with a continuous school and work record leading to a specific career area. |
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| An example of a social influence on career opportunities would be |
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| An interest inventory is designed to measure |
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| the most satisfying job activities. |
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Aptitude tests measure a person’s interests related to different types of work. |
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Most financial records should be kept in a safe-deposit box. |
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| A(n) __________ is a specific plan for spending. |
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Spending less than your income will increase net worth. |
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Assets represent amounts owed to others that must be paid within the next year. |
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| An example of a liquid asset would be |
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| Definite financial obligations are referred to as |
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A personal balance sheet reports the financial position of a person or family on a given date. |
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| __________ represents amounts owed to others. |
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| A personal cash flow statement presents |
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A budget deficit exists when actual spending exceeds projected spending. |
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A general sales tax is also referred to as an excise tax. |
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Taxable income refers to the amount deducted from a person’s pay. |
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A tax deduction directly reduces the amount of taxes owed |
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Most people mail the full amount owed in federal income tax each April. |
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Enrolled agents are IRS auditors who visit people’s homes to verify deductions. |
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| __________ is deductible as an itemized deduction. |
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| An example of an adjustment to income is |
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| a reduction from adjusted gross income. |
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| When an IRS agent visits your home or office to verify tax records, this is referred to as a(n) |
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| An example of tax-exempt income is |
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Definition
| interest from municipal bonds. |
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Demand deposits refer to money deposited in savings accounts. |
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| A ___________ endorsement is most useful when depositing checks by mail. |
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| The fewest financial services would probably be offered by a(n) |
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A quick source of cash is to liquidate savings. |
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A credit union usually offers a wider range of financial services than a commercial bank. |
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Term
| The rate of return on a savings account may also be referred to as |
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Definition
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| The savings plan that is likely to have a set rate of return is a |
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A CD account is a checking account that earns interest. |
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A savings account with daily compounding will have higher earnings than an account with quarterly compounding. |
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| A personal check with guaranteed payment is a |
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