Personal Finance Budgeting Review Budgeting Definitions Types of Expenses Budgeting Formulas Document Storage Budgeting Potpourri 200 200 200 200 200 400 400 400 400 400 600 600 600 600 600 800 800 800 800 800 1000 1000 1000 1000 1000 Final Jeopardy Definitions: 200 • Question: • Debts you owe. • Answer • Liabilities Definitions: 400 • Question: • Small, secure storage compartment rented in a bank • Answer • Safe Deposit Box Definitions: 600 • Question: • Cash and items that can be quickly converted to cash. • Answer • Liquid Assets Definitions: 800 • Question: • The difference between the amount you own (assets) and the debts you owe (liabilities). • Answer • Net Worth • Question: Definitions: 1000 • Known as your take-home pay. • Answer • Net Income Expenses: 200 • Question: • Expenses that vary from month-to-month • Answer • Variable Expenses Expenses: 400 • Question: • Expenses that do not change monthly. • Answer • Fixed Expenses Expenses: 600 • Question: • Expenses that are not paid monthly and may vary in cost. • Answer • Periodic Expenses Expenses: 800 • Question: • Describe P.Y.F. • Answer • Pay Yourself First • Whenever you receive money, place some aside to use later. Expenses: 1000 • Question: • Collected by every employer on behalf of employees and sent to the state revenue department. • Answer • State Income Tax • Question: Budgeting Formulas: 200 • Net Worth • Answer • Assets – Liabilities = Net Worth • Question: Budgeting Formulas: 400 • Net Cash Flow • Answer • Income – Expenses = Net Cash Flow • Question: Budgeting Formulas: 600 • Overtime Wage • Answer • Hourly wage x 1.5 = Overtime Wage • Question: Budgeting Formulas: 800 • Debt Ratio • Answer • Liabilities / Net Worth = Debt Ratio (lower is better!) • Question: Budgeting Formulas: 1000 • Liquidity Ratio • Answer • Liquid Assets / Monthly Expenses = Liquidity Ratio (higher is better!) • Question: Document Storage: 200 • Employment Records, Tax Records, Housing Records, Insurance Records • Answer • Home Files • Question: Document D Storage: 400 • Resume, Tax Records, Current/Past Budgets • Answer • Home Computer • Question: Document Storage: 600 • Your will, birth certificates, valuable collectibles, car titles • Answer • Safe Deposit Box • Question: Document Storage: 800 • Things you own/have value. • Answer • Assets • Question: Document Storage: 1000 • The money you have coming in and the money going out. • Answer • Cash Flow • Question: • Trade Off • Answer • Opportunity Cost Budgeting Potpourri: 200 • Question: Budgeting Potpourri: 400 • Total income before deductions are subtracted. • Answer • Gross Pay • Question: Budgeting Potpourri: 600 • Provides medical insurance to the elderly and to some disabled Americans • Answer • Medicare • Question: Budgeting Potpourri: 800 • Purpose of the W-4. • Answer • Allows the employer to withhold income taxes from employee’s wages. • Question: Budgeting Potpourri: 1000 • Relies on the tax payer for financial support. • Answer • Dependent Final Jeopardy • Question: • Goal of the zero-based budget. • Answer • To spend on paper what you intend to earn prior to earning the money. Daily Double *The winner of the last round needs to write down how many points you are willing to risk.* If you get the question right, you win those points! If you get it wrong, you lose those points! Daily Double *The winner of the last round needs to write down how many points you are willing to risk.* If you get the question right, you win those points! If you get it wrong, you lose those points!