Midterm Review: Personal
Finance
Emoni Nichols
Week 2:
Week Topic Paragraph Mental Image
2 The plan for our lives & To plan your life goals need to be set &
Lifetime Planning met. Learn to set up goals, and make a
way to meet each goal. Goals can be short
term, long term, even intermediate.
Week 3
3 Earned Income & Skill Demand & Earned income is money you earned
Supply from work.Unearned income is income
that you do not physically work for.
Supply & Demand is what product there
is and how much is wanted by customers.
Week 4
4 The Consumer Life Cycle & Income Alpha, young single childless people.
Over the Life Cycle Bravo, married but still childless
Charlie, one income with new child
Delta, dependants
Echo, Kids out of school, parents divorce
Foxtrot, people retire time of death
Week 5
5 Property & Unearned Income Financial asset is a tangible liquid
from Financial Assets & asset that derives value because of
Transfer Payments a contractual claim of what it
represents. Transfer payment is a
redistribution of income in the
market system. Ways to earn
unearned income:investment,
inheritance, government assistance.
Week 6
6 Federal Income Taxes & Other Annual earnings of individuals,
Deductions from Pay corporations, trusts and other legal
entities. You take post-tax
deductions (also called after-tax
deductions) out of employee
paychecks after taxes. Post-tax
deductions have no effect on
taxable wages and the amount of
tax owed.
Week 7
7 Paying for What We Buy Spread out what needs to be paid
Budgeting and what is most important. Such
as bills, car, saving, and leisure.
Week 8 5steps in the buying a home 1.
Determine your homeownership
8 Renting vs. Buying needs- What benefits do you want?
Stability, Financial, Tax
benefits.Find and evaluate a
property to purchase- Local
Zoning laws.Price the property-
Negotiate the price of the home.
Obtaining financing- Determine
the amount of down payment
Close transaction- make it final
Types of mortgage Fixed
,adjustable ,home equity,
refinancing
Week 9
9 Vacation & Leisure When taking a vacation, or doing things
you like to do there is a budget you need
to have on how much things are going to
cost you like, travel, housing etc.