BUS 2012 20Final 20Exam 20Review 20 complete

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BUS 2012 20Final 20Exam 20Review 20 complete Powered By Docstoc
					                    Final Exam Review
                         December 6, 2010




Bus 12 – Money Matters                      R. Okumoto
                         Lecture Topics

        o Financial Literacy:
                 o Budgeting (Life Planning)
                 o Saving & Investing (Life Savings model)
                 o Retirement, Trusts, & Estates
                 o Credit & Debt (Compounding)
                 o Insurance
                 o Taxes
                 o Basic Money Math


Bus 12 – Money Matters                                 R. Okumoto
                         Lecture Topics

              o Understanding more about you
                         o   Money & Stress
                         o   Secret to a long life
                         o   Charitable Giving
                         o   Sick of Poverty
                         o   Love & Money
                         o   Strategic Learning
                         o   Inequality



Bus 12 – Money Matters                               R. Okumoto
                 Budgeting
Flash Card –

o   What is a Budget – ST Forecast
o   What is Personal Cash Flow?
o   Start with a Goal
o   Wants versus Need
o   Analyze spending
o   Key Elements of a Budget
o   What is the easiest section of the Budget to change?
o   Short term Budget Goals
o   What is Overspending?
o   What is a Budget Killer?
                  Budgeting
Flash Card –

o   What is Financial Planning – LT Forecast
o   Certified Financial Planning Board
o   What is the basic principle of the Life Savings Model?
o   Education effect on income?
o   Traps according to the Life Savings Model
o   How many months of living expenses for Emergencies
           Savings & Investing
Flash Card –
o   What is “Preservation of Principal” concept?
o   What is the FDIC and what does it do?
o   What is the concept of “Risk versus Reward?”
o   What are typically tax-free investments?
o   What is “Alpha?”
o   What is “Beta?”
o   What is the relationship of Bond Prices & Interest Rates?
o   What is the difference between MMFund & MMDeposit
    Account?
          Savings & Investing
Flash Card –
o   Understand the terms: Liquidity, Yield, Risk
o   What are “Near-Cash” types of Investments?
o   What are the (2) Defensive Stock Sectors?
o   What is a Stock?
o   What is a Bond?
o   What is a “Junk” Bond?
o   What is Asset Allocation?
o   What is “Risk Tolerance?”
o   Understand the different Financial Provider Designations
Retirement, Trusts, & Estates
 Flash Card –
 o   What is Inflation?
 o   What are the (3) primary sources of retirement income
 o   What is a Defined Contribution Retirement Plan?
 o   Understand the unique qualities of a Roth IRA
 o   What is a Defined Benefit Retirement Plan?
 o   Why should you establish a Trust?
                Credit & Debt

Flash Card –
o   What is “Preservation of Principal” concept?
o   What is a Credit Score?
o   Why is a Credit Score important?
o   What is Fannie Mae, Freddie Mac, or FHA?
o   What is collateral?
o   What is Amortization?
o   What is a Mortgage?
                   Insurance

Flash Card –
o   What are the (2) primary characteristics of Insurance?
o   What is a PPO or HMO?
o   What does the word “Deductible” mean in Insurance?
o   What is a “Co-Payment?”
o   Understand the concept of Liability Loss Insurance
o   Understand what may be covered under Renter Insurance
                    Insurance

Flash Card –
o   What is Term Life Insurance?
o   What is Permanent Life Insurance?
o   What is Disability Insurance?
o   What is an Umbrella Insurance Policy?
o   What is an Annuity?
o   What are the two principle Insurance Categories?
                       Taxes

Flash Card –
o   Understand the concept: Before & After tax dollars
o   Who is an Enrolled Agent or a CPA?
o   What is a progressive tax?
o   What is a W4?
o   What is a W2?
             Basic Money Math

Flash Card –
  o   Formula to calculate Net Worth
  o   Formula to calculate Budget surplus or deficit
  o   Formula for the Rule of 72
  o   Methods to calculate Compound Interest
  o   Determine monthly, quarterly, or semi-annual interest rates
                Key Definitions

Flash Card –
  o   Define Financial Literacy
  o   Define a Financially Wealthy Person
  o   Define “Good” Financial Health
  o   Understand Student funding options
Paying for college
   Know the differences between scholarships, grants and
    loans
   The basic premise of financial aid is that it is the family’s
    responsibility for the cost of education
   Know the attributes of Pell grants, Federal work study
    program
   Know what FAFSA stands for (Free Application for
    Federal Student Aid) – FREE, don’t pay for it
   Know the dangers of private loans (high interest rates!)
Happiness
   Happy people are more likely to
       1.   Have more and closer friends
       2.   Better health, live longer
       3.   More pro-social in trusting and helping
            others
       4.   More peaceful and cooperative attitudes
       5.   If happy at work are better workers
                         Money & Stress

    Flash Card –
          o   What is the definition for “physiology?”
          o   What does the autonomic nervous system do?
          o   What does the sympathetic nervous system do?
          o   What is the best way to deal with STRESS?
          o   What is Cortisol?
          o   Understand “Good” Stress
          o   Understand “Bad” Stress




Bus 12 – Money Matters                                       R. Okumoto
Know the 2 parts of the autonomic nervous system and
what effect they have on the following both long term and
short term

   Breathing Rate                Thought
   Blood Pressure                Creativity
   Heart Rate                    Concentration
   Metabolism                    Immune system
   Blood Sugar                   Digestive System
   Adrenaline
   Sensory Awareness
               Secret to a Long Life

   Flash Card –
         o What is a primary contributor to a long life?
         o What is one of the worst things for health?
         o What is a good tip for being happy?




Bus 12 – Money Matters                                     R. Okumoto
                     Charitable Giving

   Flash Card –
         •   What is the reaction of people “giving” away money?
         •   Understand the human trait of “Altruism”
         •   What is a “Bequest?”
         •   What is the “Warm Glow Effect?”
         •   What is Philanthropy?
         •   Understand what to look for in a Charity
         •Know the 3 main kinds of philanthropy
         •Who gives the most?
         •What effect does giving to charities have on an individual’s
         income taxes?




Bus 12 – Money Matters                                              R. Okumoto
                         Sick of Poverty

 Flash Card –
       o   What is the SES gradient?
       o   Does it prove true given different living conditions?
       o   Understand what may activate of stress response?
       o   Understand psychological stress effects




Bus 12 – Money Matters                                         R. Okumoto
                         Love & Money

Flash Card –
   o What is “Financial Intimacy?”
   o What is the difference between “position” versus “interest?”
   o  Understand the “You” versus “I” statement
   o Five Basic effective communicating rules with money matters
   •Know the 4 models discussed in class for sharing money and
   what they mean and the pros and cons
         •Equal and independent
         •Proportional contributions
         •Share everything
         •Share everything with a personal allowance




Bus 12 – Money Matters                                   R. Okumoto
                   Strategic Learning
        Flash Card –
              o What is Collaboration?
              o Know the difference between deep and shallow
                  learning and what leads to each
              o   Understand the stages of the brain development
              o   Understand memory retention (stages and what
                  part of the brain is crucial for the transfer of
                  short-term memories to long term memory)
              o   Understand different ways of learning
              o   What happens physically in the brain when
                  learning occurs?
              o   What strategies are suggested in the chapter on
                  “Strategic Learning” for improving your
                  grades”?
Bus 12 – Money Matters                                         R. Okumoto
                         Inequality

Flash Card –
     o   Understand the different income quintiles
     o   Understand what may have caused the inequalities to occur
     o   Understand what may be good about this inequality
     o   Understand what may be bad about this inequality
     o   Understand possible legislative options to make change




Bus 12 – Money Matters                                    R. Okumoto

				
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