Final Exam Study guide Life After PHS Semester

Savings accounts • 3 main types – CD- higher rate of return, but need

Savings continued • Scenario- You have $10, 000, right out of school. When comparing

Loans • What do we get loans for? • What is the difference between

Credit • • • What is a credit score? What goes into your credit

Pay checks • • • Difference between gross and net What deductions are taken

Credit cards • Pros and cons • How do credit card companies make money?

Slides: 7

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Final Exam Study guide Life After PHS Semester 1 2013 -14

Savings accounts • 3 main types – CD- higher rate of return, but need to keep money in for specified time – Savings- minimal risk, low interest rates, watch out for fees if balance falls below minimums. – Money Market- generally better interest rates, can charge fees for minimum balances

Savings continued • Scenario- You have $10, 000, right out of school. When comparing banks, what do you look for? How would you divide this money up? • Similarities and differences between banks and credit unions

Loans • What do we get loans for? • What is the difference between fixed rate and ARM? • Which type of loan is better right now and why? • Understand which type of loan you would pay off first based on balance/interest rate and term.

Credit • • • What is a credit score? What goes into your credit score (see slide) How do you establish good credit How can you improve your credit? Understanding how credit affects you. What causes credit to go up and down?

Pay checks • • • Difference between gross and net What deductions are taken out? Why do income tax rates differ? How can politics influence tax law? How to fill out a W-4 What income is taxed?

Credit cards • Pros and cons • How do credit card companies make money? • Interest rates for credit cards and how they change • Incentives to open cards • Minimum payments and fees.