Senior Review for Personal Finance for the EOC
Here is a list of concepts and vocabulary terms that you will need to be familiar with for the EOC that you will take on your last day.
Career Planning and Budgeting
What types of documents/papers do you need when applying for a job?
When a person can do many different things (i.e. play many different instruments) what is that called?
What is an emergency fund and why would you have it?
What is the term inflation and how does it affect your budget?
What is the term opportunity cost and can you give an example?
If you have an increase in an expense, what would be the best way to handle the increase?
What are some things that you need in order to keep a budget?
Can you explain to me the difference between fixed and variable expenses and give examples?
TAXES
Paychecks (look at attached sheet)
How does a W-4 influence your paycheck (look at attached sheet)
What is a W-2 and what does it tell you? (look at attached sheet)
What is a I-9 used for? (look at attached sheet)
What is the difference between Net Pay and Gross Pay? (look at attached sheet)
If you owed more taxes than you paid for the year, how would you fix that situation for next year?
What is the difference between pre-tax and post-tax and can you give an example of each?
What is the relationship between the W-4 and the amount of taxes taken out of each paycheck?
What do taxes pay for?
Insurance
If you get into a car accident what type of insurance would you need to pay for repairs?
What is insurance used for?
Can you explain to me the relationship between premium and deductible?
Banking/Savings
What is the biggest bank in the United States and what does it do?
When the bank uses your money and pays you for it, what is that called?
Credit
Explain to me the dangers of payday loans or predatory lenders?
How can a low credit score influence your purchasing decisions?
When speaking about the C’s of credit, what does the term collateral mean, and why is it good or bad?
When you have a mistake on your credit report what are the steps to fix it?
What laws or Acts protect consumers when dealing with credit? (more importantly which ones deny discrimination).
Stocks and Investments
How does a stock split work and can you calculate it?
EX. Originally I have 20 shares at $2.00, what do I have after the stock split?
When looking at the investment pyramid, what types of investments are the riskiest/safest?
What is the difference between a full-service and a discount broker and what fees do you have to pay when dealing with brokers?
Can you apply the rule of 72 and what does it do?
What is the benefit of tax-deferred investments?
What can the price-earnings ratio tell you?
When investing what does the term diversification mean and is it a good thing or bad?