Personal Finance

 

Personal Finance:

DANTES Final Exam Outline 

Each topic will be covered in class. 

 

Foundations (9% 11%)

 

  • Financial goals, budgeting, financial statements, and cash management: Budgeting is the basis for all financial plans. Establish financial goals so you know what your goals and values are before you can figure out how to achieve them.

  • Economic terminology: Recession, depression, deflation, inflation, and monopoly.

  • Institutional aspects of financial planning: The influence of banks, loans, businesses, investments, etc. on financial planning.

  • Time value of money: money available at the present time is worth more than the same amount in the future due to its potential earning capacity.

 

Credits and Debt (14% - 16%)

 

  • Consumer credit: A debt that is allowed to an individual for the purpose of purchasing an item to be paid in increments.

  • Bankruptcy: Liquidating assets to pay debts or by creating a repayment plan.

 

Major Purchases (14% - 16%)

 

  • Auto: Considerations include renting versus buying and the potential costs and savings associated with such a decision.

  • Housing: When people decide to rent or buy a home, they must consider initial cost, yearly cost, lost opportunity cost, and selling cost among others.

  • Other major purchases: This may include jewelry, boats, furniture, and other high-cost insurable items.

 

Taxes (14% - 16%)

 

  • Payroll deductions: Payroll taxes must be withheld from an employee’s paycheck.

  • Income: A tax that governments impose on financial income generated by all entities within their jurisdiction.

  • Tax planning/estimating: (1) deferring income to the following year (2) accelerating deductions into the current year (3) Taking advantage of any expiring tax provisions.

 

Insurances (14% - 16%)

 

  • Life policies: Term Life insurance offers the most amount of coverage for the least amount of money and is the appropriate choice for most people.

  • Property and liability policies: Personal and family auto, homeowners, umbrella coverage, etc.

  • Health, disability, and long-term policies: Major Medical covers the expenses associated with serious illness or hospitalization.

 

Investments (14% - 16%)

 

  • Saving accounts and money markets: Savings allow you to keep your money in a safe place while it earns a small amount of interest each month.

  • Stocks, bonds, and mutual funds: Stock Exchange is an exchange on which shares of stock and common stock equivalents are bought and sold.

  • Sources of information: Moody’s, Morning Star, Barron’s Confidence Index, Standard & Poor (S&P), etc.

 

Retirement and Estate Planning (14% - 16%)

 

  • Funding retirement: IRAs, Roth IRAs, Conduit IRA, etc.

  • Social security: depends on prior earned income and the number of years the retiree paid into the Social Security system.

  • Estate planning: An activity that arranges for the conservation and transfer of property from one person to another person or entities.

     

     

 

 

 

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