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TCU PERSONAL FINANCIAL LITERACY FINAL EXAM

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TCU PERSONAL FINANCIAL LITERACY FINAL EXAM

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When you change employers in a year will you receive a W2 from both employers?


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YES you will get both & need to report both on your 1040 (tax return)




What does your credit score impact?


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Buying a house/renting apartment, Securing better interest rates on loans
and credit cards, Landing and keeping a job, Purchasing a car, Getting a
cell phone, Setting up utility accounts, Paying for insurance

,Compounding


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Compound interest makes your money grow faster because interest is
calculated on the accumulated interest over time as well as on your original
principal.
good for stocks, bad for debt




from most to least volatile, order stocks, bonds, and cash


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stocks (10%), bonds (5.5%), and cash (2.3%)




Company Benefits


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Depending on the company, these benefits may include health insurance,
dental insurance, vision care, life insurance, paid vacation leave, personal
leave, sick leave, child care, fitness, a retirement plan, and other optional
benefits offered to employees and their families - consider these in
addition to salary!




Is there a law that allows a child to stay on parent's health insurance?


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, Yes, til age 26




Should you have a long or short term car lease payment?


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Shorter! Do not go over 60 months
Do not tell leasing professional what you want your monthly payment to be




How many months worth of expenses should you have in your emergency fund?


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9 months




What is credit utilization ratio?


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Ratio of the amount of debt you owe to the amount of debt you have been
approved for - dont use more than 30% of credit card balance




Should you take a loan out of (against) your 401K?


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