Question: Leyia and Larry Hartley of Columbus, Ohio

> Distinguish between a progressive and a regressive tax.

> Is the gig economy, freelancing, or entrepreneurship for you? Why or why not?

> What can be done to enhance your abilities, experiences and education without working in a job situation?

> How do your values and interests impact your life-style trade-offs in career planning?

> What is career planning and why is it important?

> Now that you have read this chapter on building and maintaining good credit, what would you recommend to Julia Grace regarding: 1. How might Julia go about establishing a debt limit? 2. What two or three things can she do help keep her student debt under

> Now that you have read the chapter on the importance of career planning, what do you recommend to Nicole Linkletter in the case at the beginning of the chapter regarding: 1. Clarifying her values and lifestyle trade-offs in career planning? 2. Enhancing

> Victor is somewhat satisfied with his sales career and has always wondered about a career as a teacher in a public school. He would have to take a year off work to go back to college to obtain his teaching certificate, and that would mean giving up his $

> Now that you have read the chapter on managing checking and savings accounts, what would you recommend to Nathan Rosenberg and Avigai Abramovitz in the case at the beginning of the chapter regarding: 1. Where they can obtain the monetary asset managemen

> Now that you have read the chapter on managing income taxes, what advice can you offer Ace and Florence in the case at the beginning of the chapter regarding: 1. Using tax credits to help pay for Ace’s college expenses? 2. Determining how much money Flor

> Now that you have read the chapter on financial planning, what do you recommend to Austin Patterson for his talk with Emily on the subject of financial planning regarding: 1. Setting financial goals? 2. Determining what they own and owe? 3. Using the inf

> Now that you have read the chapter on the importance of personal finance, what do you recommend to Jing Wáng in the case at the beginning of the chapter regarding: Participating in her employer’s 401(k) retirement plan? Understanding the effects of her

> Is it too easy for college students to get credit cards? Who do you know who has gotten into financial difficulty because of overuse of credit cards, and what happened?

> Use the information on pages 185, 186 and 187 to discuss how best to deal with student loan debt Page No. 185, 186,187: CHAPTER 6 Building and Maintaining Good Credit 185 6.2a Method 1: Continuous-Debt Method A useful approach for determining your d

> How might students judge whether they are taking on too high a level of student loan debt?

> What aspects of your financial life make you creditworthy? What aspects might make it difficult for you to obtain credit?

> Have you ever had a disagreement with a friend or family member over a money issue? How might you communicate differently now?

> Lost/Stolen Debit Cards. What should you do if your ATM or debit card is lost or stolen? Why?

> Harry has started out fine in his career as his responsibilities have increased since he began working there about five years ago. Belinda recently attended a conference for those in her stock brokerage field and by chance she dropped in at the “career s

> When might it be appropriate for you to save via a certificate of deposit versus a money market account?

> Many people desire protection from the possibility of overdrawing their checking account. Banks make it easy by allowing you to opt into overdraft protection. Explain how this and other overdraft protections work and why the true cost of opting in may ex

> When would you recommend using an individual account, a joint tenancy with right of survivorship account, and a tenancy by the entirety account for your monetary assets?

> You know someone who recently had $90 in overdraft fees for two small debit card transactions. Explain to him why such high fees resulted from such small transactions and the relative benefits of having an automatic funds transfer agreement versus an aut

> List two examples of checking account transactions that result in assessment of fees that are avoidable?

> Identify three strategies to reduce income tax liability that you may take advantage of in the future.

> Name three tax credits that a college student might take advantage of while still in school or during the first few years after graduation.

> Some college students earn money that is paid to them in cash and then do not include this as income when they file their tax returns. What are the pros and cons of this practice?

> Many college students choose not to file a federal income tax return, assuming that the income taxes withheld by employers “probably” will cover their tax liability. Is such an assumption correct? What are the negatives of this practice if the employers

> What can a person try to do to genuinely control spending to better achieve financial success?

> You have been asked to give a brief speech on how to achieve financial success and financial security. Use the five steps in the financial planning process and the building blocks to achieving financial success in your speech. Outline your speech.

> Do you have a budget or spending plan? Why or why not? What do you think are the two major reasons why people do not make formal written budgets?

> Of the financial ratios described in this chapter, which two might be most revealing for the typical college student?

> College students often have little income and many expenses. Does this reduce or increase the importance of completing a cash-flow statement on a monthly basis? Why or why not?

> What are two of your most important personal values? Give an example of how each of those values might influence your financial plans.

> What is the biggest budget-related mistake that you have made? What would you do differently now?

> During slow economic times, the federal government’s budgeting priority often is to borrow so it can spend more money than it takes in. What happens to families that try that, and why?

> People regularly make decisions in career planning that have trade-offs. Identify some benefits and costs people are faced with as well as two lifestyle trade-offs.

> What would you do if you inherited $3,000 from an aunt? Identify three options.

> Thinking about some common mistakes that people make in job interviews, which three are the worst? Make a short list of things people should do to improve success in an interview.

> What are some common mistakes that people make in personal finance? Name two that might be the worst, and why?

> Samantha Beliveau of Ames, Iowa, is a senior in college, majoring in nutrition. She anticipates getting married a year or so after graduation. Samantha has only one elective course remaining and is going to choose between an advanced class in sociology a

> Where is the United States in the economic cycle now, and where does it seem to be heading? List some indicators that suggest in which direction it may move.

> List three interviewing tips for new college graduates looking for employment when in many parts of the country a growing job market exists.

> You plan to retire in 40 years. To provide for your retirement, you initiate a savings program of $4,000 per year yielding 7 percent. What will be the value of the retirement fund after 40 years? (Hint: Use Appendix A.3 or visit the Garman/Forgue compan

> You want to create a college fund for a child who is now 3 years old. The fund should grow to $60,000 in 15 years. If an investment available to you will yield 6 percent per year, how much must you invest in a lump sum now to realize the $60,000 when nee

> Isabel Lopez, from Lewiston, Idaho, is age 19, and she recently received an inheritance of $50,000 from her grandmother’s estate. She plans to use the money for the down payment on a home in ten years when she finishes her education. Ri

> Invest Now or Later? Twins Natalie and Kaitlyn are both age 27. They both live in Warren, Ohio. Beginning at age 27, Natalie invests $2,000 per year for ten years and then never sets aside another penny. Kaitlyn waits ten years and then invests $2,000 pe

> What would be the marginal tax rate for a single person who has a taxable income of (a) $31 ,560, (b) $58,150, (c) $66,450, and (d) $100,580? (Hint: Use Table 4-2.) Table 4-2: Table 4-2 Tax Rate Schedules DO IT IN CLASS Single Individuals If taxable

> What would be the tax liability for a single taxpayer who has a gross income of $50,050?

> Cody Sebastian, of Lubbock, Texas, earns $60,000 a year. He pays 30 percent of his gross income in federal, state, and local taxes. He has fixed expenses in addition to taxes of $1,800 per month and variable expenses that average $1,400 per month. What i

> Survey two relatives or friends and ask about their decision-making process when they most recently bought a vehicle. Find out if they thought about the opportunity costs when making the purchase. Also ask if they used marginal costs in their thinking. M

> Review the financial statements of Victor and Maria Hernandez (Table 3-2 and Table 3-3) and the financial ratios on page 87 and respond to the following questions: (a) How would you interpret their investment assets to total assets ratio? The Hernandez

> Tyler Winkle’s employer in Pittsburgh makes a matching contribution of $2,000 a year to his 401(k) retirement account at work. If the dollar amount of the employer’s contribution increases 4 percent annually, how much will the employer contribute to the

> Using the Rule of 72, calculate how quickly $1,000 will double to $2,000 at interest rates of 2 percent, 4 percent, 6 percent, 8 percent, and 10 percent.

> Using the present and future value tables in Appendix A, the appropriate calculations on the Garman/Forgue companion website, or a financial calculator, calculate the following: (a) The amount a person would need to deposit today to be able to withdraw $

> Megan Berry, a freshman horticulture major at the University of Minnesota, has some financial questions for the next three years of school and beyond. Answers to these questions can be obtained by using Appendix A or the Garman/Forgue companion website.

> Julia has recently undergone a severe career crisis. After nearly ten years as a professional engineer, her position was phased out by her company due to a loss of government contracts, and she has been offered a position in the marketing department. The

> Jacob Marchese of Vancouver, Washington, is the credit manager for a regional chain of department stores. He has been asked to join a panel of community members and make a ten-minute speech to graduating high school seniors on the topic “Using Credit Wis

> Julia has been thinking about the purchase of a boat. As a teenager, she was an avid water skier at her parents’ summer home. Now that she has moved away, she wants to renew her hobby at a lake nearby. Julia recently received a raise of $200 per month an

> Victor and Maria have always enjoyed a close relationship with Maria’s niece Teresa, who graduated from college with a pharmacy degree. Teresa recently asked Maria for some assistance with her finances now that her education debts are coming due. She owe

> Harry and Belinda have a substantial annual joint income—more than $125,000, in fact. Nevertheless, they expect to experience some cash-flow deficits during the months of November and December of the upcoming year (see Tables 3-6 and 3-

> Throughout this book, we will present a continuing narrative about Victor and Maria Hernandez. Following is a brief description of the lives of this couple. Victor and Maria, both in their late 30s, have two children: Jacob, age 13, and Nicholas, age 15.

> Asset Management Kwaku Addo, a licensed physical therapist from Topeka, Kansas, earns $4,200 per month take-home pay and has the funds directly deposited in his checking account. He spends only about $3,500 per month, and the excess funds have been build

> Julia’s six-figure salary has allowed her to build up a considerable cash reserve of over $20,000. She initially had basic checking and savings accounts. She also has a credit card with her bank that she uses to make most of her purchases, thereby earnin

> Fast The Hernandez family is experiencing some financial pressures, even though the couple has a combined income of $85,000. Also, their eldest son, Joseph, will start college in only three years. Maria is contemplating going to work full time to add abo

> Review Figure 4-1 on page 117 and comment on the logic of how different segments of Victoria Bassett’s income is taxed. Figure 4-1: Figure 4-1 How Your Income Is Really Taxed (Example: Victoria Bassett with a $60,000 gross income,

> Carson Wentz, of Philadelphia, determined the following tax information: salary, $144,000; interest earned, $2,000; qualified retirement plan contribution, $6,000; personal exemption, $4,050; itemized deductions, $10,000. Filing single, calculate Carson’

> Jared Goff, of Los Angeles, determined the following tax information: gross salary, $160,000; interest earned, $2,000; IRA contribution, $5,000; personal exemption, $4,050; and itemized deductions, $8,000. Calculate Jared’s taxable income and tax liabili

> Find the tax liabilities based on the taxable income of the following people: (a) married couple, $92,225; (b) married couple, $74,170; (c) single person, $27, 880; (d) single person, $56,060. (Hint: Use Table 4-3.)

> Describe two professional certification programs for financial planners.

> What are the four different ways financial planners may be compensated?

> In January, Harry and Belinda Johnson had $10,660 in monetary assets (see page 109): $1,100 in cash on hand; $1,200 in a statement savings account at First Credit Union earning 1.0 percent interest; $4,000 in a statement savings account at the Far West S

> How does a professional financial planner differ from a local lawyer or insurance person in your community?

> Identify three ways you might more effectively communicate about money matters.

> Explain why it is difficult for many people in relationships to talk about money matters.

> Explain what a cash-flow calendar accomplishes. Name three techniques to control spending.

> How might one go about revising budget estimates to create a balanced budget?

> What are budget estimates? Offer some suggestions on how to go about making budget estimates for various types of expenses.

> Explain why setting financial goals is an important step in budgeting.

> Name different ways to handle budget variances.

> List two ways you can maximize the benefits from a tax-sheltered retirement program.

> Create a math example of why many employees participate in a tax-sheltered employee benefit plan, such as an HSA or 401(k) plan

> Kate Beckett and her two children, Austin and Alexandra, moved into the home of her new husband, Richard Castle, in New York City. Kate is a novelist, and her husband is a police detective. The family income consists of the following: $60,000 from Kate&a

> Summarize the benefits of participating in a high-deductible health care plan at work.

> What is a flexible spending account and what do pretax dollars have to do with it?

> Distinguish between Chapter 7 and Chapter 13 bankruptcy, and explain who might be forced to use Chapter 13 rather than Chapter 7.

> What services are provided by a credit counseling agency, and how might a debt management plan work to provide relief for someone who is having debt problems?

> List the major provisions of the Fair Debt Collection Practices Act.

> Identify four signs of over indebtedness.

> Summarize the rules that apply if you lose your ATM or debit card and it is used without your authorization.

> List the steps you should take if you find an error in your monthly statement regarding an electronic transaction.

> Distinguish among credit cards, debit cards, and stored-value cards.

> Summarize what you know about Bitcoin.

> Julia does well financially because she earns a good salary as an engineer, is somewhat frugal, and is making the maximum contribution to her employer-sponsored retirement plan. After reading about ways to decrease her income tax liability, she has some

> Use Table 1-1 to calculate the future value of (a) $2,000 at 5 percent for four years, (b) $4,500 at 9 percent for eight years, and (c) $10,000 at 6 percent for ten years. Table 1-1: Table 1-1 Future Value of $1 After a Given Number of Periods Pe

> Explain the difference between simple interest and compound interest, and describe why that difference is critical.

> What are the two common questions about money?

> Summarize how to fix errors in your credit report, and explain why some people add a consumer statement to their report.

> Name three steps to help establish a good credit history.

> What is a credit history, and what role do credit bureaus play in the development of it?