Wise Financial Literacy 2023

In order to get spending under control, a person should first create a budget of current income and expenses. Comparison shopping for a car is necessary because the price for the car can vary a great deal. Financial planners generally stress the importance of starting to save and invest early because of the power of compounding and appreciation. An important feature of a good financial goal is that the goal has a specific time frame. Purchasing power decreases and it costs more money to buy more good when there is an inflation. What strategy can help a person achieve her goal to buy a house? Following a budget that allows for saving. A college student has to live on a tight budget. Before making a decision to buy the newest cell phone, which question should he ask himself first? Is the new cell phone a need or want. Which of the following quotes is sound financial advice? "A penny saved is a penny earned." Fixed expenses include rent. Mandatory deductions from a person's paycheck include federal withholding tax and FICA. When should a person begin contributing to a retirement plan? As young as possible. Which of the following is the source of income for most people aged 20-35? Wages/salary The U.S. government agency responsible for the collection and enforcement of federal taxed known as U.S. Internal Revenue Service (IRS) When a person has a balanced budget that includes savings then total expenses + savings = total income Why do financial advisers recommend that a person save at least 10% of each paycheck? to build wealth The "time value of money" means that money received today is worth more than the same amount of money received in the future. When a person receives a book store gift card, she can use it to buy a book from that store A person who dies will have his assets distributed as he wanted as long as he has a will. A person has assets worth $15,000 and loans totaling $5,000. Her net worth is $10,000. Don and Bill work together in the finance department of the same company and earn the same salary. Bill spends his free time taking work-related classes to improve his computer skills. Don spends his free time socializing with friends or watching TV. After five years , what is most likely to be true? Bill will likely make more money because he is more valuable to the company. Which of the following is an example of a long-term debt? A student loan A person earned a salary of $70,000 last year. Additionally, he had $1,000 in interest income and $2,000 in dividend income. His total income for this year is $73,000