Money Management
Final Exam Review
We’ve had an amazing semester and covered a lot of material! The final exam
hits on the most important concepts. I thought it might make it easier
for you to prepare if you had a list of important topics that will
DEFINITELY be on the test! I hope this helps. Of course, all of these
topics are covered in detail in your notes. Good luck studying! 
Chapter One: Choosing Your Career
– Changing work force – will probably change jobs many times before
retiring. Must continually retrain and learn new skills.
– Job Analysis – factors to consider when applying for a job. Pros and
Cons of a certain job.
– Vocabulary: Entrepreneurship, Productivity, Technology, Salary,
Benefits
Chapter Two: Planning Your Career
– Why people work
– Factors affecting career choice: Values, Lifestyle, Aptitudes,
Interests and Personality
– Goals: Short-term, Intermediate and long-term
Chapter Three: Getting the Job:
– Letter of Application – what is it and what should it include?
– Résumé – what is it and what can it include?
– Job Applications – what is it and how to fill one out
– Job Interviews – Do’s and Don’ts
Chapter Five: Keeping the Job:
– W4 Form – Claiming Allowances – what are they?
– Social Security – what is it? How does it work?
– W2 Form – Who sends it? What is on it? Deadline for sending it?
– Employment Laws – Unemployment, Worker’s Comp. and the Fair
Labor Standards Act.
Money Management
Final Exam Review
Chapter Six: Employee Pay and Benefits
– Regular Pay and Overtime – how to calculate both
– Gross Pay vs. Net Pay
– Deductions – What they are and how they are calculated
– Be able to read tax tables
– Benefits – What are they? Why are they offered? What are some
examples of key employee benefits? (Health Insurance, Retirement
Plans, Paid Sick or Vacation time, Employee Perks etc…) How
important are they for you to consider when applying for a job?
Chapter Seven: Federal Income Tax
– Understand taxes. What they are? Why they are taken out of our
checks? What types of services to they provide for our country?
– Difference between Progressive (income tax), Regressive (sales
tax) and Proportional (property tax) taxes.
– What is the IRS?
– Filing a Tax Return – How to fill out a 1040EZ and when is the filing
deadline?
– What are Government deficits and surpluses?
Chapter Eight: Budget Basics
– What is a budget?
– Sections of a budget: List all your income, subtract out your taxes
(OUCH!), then subtract out money that you are putting away to
save, then subtract out all of your expenses. What you have left is
your discretionary (or disposable) income.
– Reasons you should be saving… Long and short-term goals and
emergencies.
– Types of expenses: Fixed, Variable and Discretionary. Provide
examples of each.
Money Management
Final Exam Review
Chapter Nine: Checking Accounts and Banking Services
– What is a checking account? Things to consider when choosing one
– How to write a check and keep a checkbook register
– What are cancelled (or cleared checks) and overdrafts?
– What it means to “float a check”
– Signature Cards – when do you fill them out, what are they for?
– Parts of a check
– How to endorse a check – blank endorsement, special endorsement,
restrictive endorsements
– ATM Cards, Debit Cards, Credit Cards
Chapter Ten: Saving for Your Future
– PAY YOURSELF FIRST! Importance of Saving
– How much you should try to save
– The miracle of compounding interest. Understand what compounding is
and be able to do a couple of simple compounding problems
– Different ways to save: Regular Savings Account, CD’s, Money Market
Accounts, Investing in Mutual Funds or Stocks.
– Factors to consider when deciding on a savings option: Interest,
Liquidity, Risk, and Convenience
Chapter Eleven: Managing Your Investments
– How much should you have saved before you start investing?
– Reasons to invest and understanding that investing involves some risk
– Sources of financial investment information
– What is a broker?
– Investment options: stocks, bonds, mutual funds, real-estate etc…
Money Management
Final Exam Review
Chapter Twelve: Investing in Stocks
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What are stocks? Round lots? Odd lots? Dividends? Selling short?
Stock splits?
How to read a stock quote
Blue-chip stocks, Penny Stocks, Growth Stocks, Income stocks,
Defensive Stocks, Cyclical Stocks
How do you make money from stocks?
What is a stock exchange? Examples: (NYSE, NASDAQ, AMEX)
Strategies for investing in stock long-term. “Buy and Hold”
Chapter Fourteen: Investing in Mutual Funds or Real Estate
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What is a mutual fund?
Why investors purchase mutual funds?
Different types of funds: growth fund, income fund, balanced
fund
Pros and Cons of investing in real estate
What is a down payment? A mortgage?