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COA 4131: EXAM 1

Federal Reserve
oversee money progress of US
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What is most Important benefit
Health
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How Much salary is for benefits
Up to 30%
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Micro economics
houshold individual family financial behavior
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Carter
Democrat, very high inflation 1977-1981
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Ronald Reagan
Republican SUPPLY SIZE ECONOMY
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George Bush
Republican contiued regan policy
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Bill CLinton
Democrat NEW ECONOMY Internet Boom big growth
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George W
republican corporate and personal responsibility Recession
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Obama
Democrat keep out of depression Affordable healthcare no more penny
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Unemployment
5% is what we want 2% is amazing 6% is what were at
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Opportunity cost
paying for one thing instead of another thing
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INFLATION RATE
2%
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How do you measure inflation
Consumer price index how prices have gone up that year
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Avg amount of credit cards
8-10
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State with most bankruptcy
Utah, Tennessee
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Before you file bankruptcy
Get credit counseling
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Level of Living
where you are now
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Standard of Living
where you want to be
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Hs vs College
college graduates make twice as much as high school
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Business/Economic Cycle
Expansion..Recession....Depression...Recovery
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Depression 1930
10% or more unemployed 6-7% now
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Time value of money
compound intrest should i buy now invest or wait
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Highest age of income
35-54
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Budget
Monthly measure of inflow and outflow housing is most expensive
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Family Budget %
32% housing 18% transportation
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Fixed Expanse
rent, car payment
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Flexible Expanse
food, entertainment
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Insolvent
can't pay debt very BAD
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Solvent
This is good, you can make payments
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Reserved Fund
3 total months of salary on the side for emergency
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Most common tax form
1040
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Where do taxes go
Social Services
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Tax Evasion
illegal when you just don't pay taxes
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Audited
only 1% chance of getting pulled
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W4
what you sign when you start at a company
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W2
What you get at the end of the year
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Financial Planner
CFP certificate CPA large old known
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College Funds
Bright futures, forida pre paid
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Custodial account
Education IRA parent in charge save for children
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Savings Bond
Low risk very safe Least Expansive
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EE Bonds
1-4 have savings bond most common
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I Bond
tracks inflation
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Property Tax
taxes on a house, condo, developed or undeveloped
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US savings
4-6% strive for 10%
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Home Banks
Safety deposit safe
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Bank Accounts
Compounding NOW interest rates
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Deregulation of Bank
brokerage house money marketing accounts , credit unions
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Financial Analysis
AWARE.....Analysis......ACTION.....EVALUATION
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Affinity Cards
Don't get unless they are the same price
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Insurance
FDIC only up 250,000 spread out money
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CD
Certificate of deposit, very secure, time accounts, longer its in more money
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Net Worth
Assets minus liability
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Financial Assesment
Budget and net worth
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FICO Score
Issac Corp median score 623
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High FICO
720
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Low FICO
Under 500
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Debit Cards
Used more by younger people and credit by older
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Fixed Income
receive the same amount of money every month...social security
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In the Black
finacially good
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In the red
financially BAD debt
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Furloughs
temp layoff, no pay, but job once economy is back up
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Euro
most of europe
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Pound
England
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Yen
Japan
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CH 11
Business goes under
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CH 13
Pay back some of debt, this is best of them all
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CH 7
absolved, don't pay any very bad
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Population
Cali, Texas, Florida, NY
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Wealth
Salary and Income own things that can increase in value to become more wealthy.
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Tangible assets
Flashy cars
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Supply and Demand
The more things made the less expensive
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Ben Bernake
14th chairman
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Janet Yellen
15th chairman first woman
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Vesting
working a certain # of years to get retirement
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Taxe AVG
20-40% of salary
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Benefits Received Philosophy
Those who use the the benefit from the public should pay for it ex toll road
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Ability to pay phil
higher income should pay more
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Progressive PHIL
more you earn more you pay
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Regressive PHIL
take smaller % of those who make more than those who are lower ex. food taxes same for everyone
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Tax Avoidance
legal, donate money so you don't pay on it
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Excise Taxes
taxes on specific goods
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homestead exemptions
reductions in property taxes due to disability age
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Estate Tax
taxes imposed on value of deceased persons money
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Inheritance Tax
Paid by beneficiaries of an estate
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Gift Tax
Oprah and the cars
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Retirement plans
401k 403B government and nonprofit IRA Individual retirement account
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Biometric
how to identify yourself, finger print, eyes ets
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5 C of credit
Capacity Capital Character Collateral Conditions
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