Personal Finance Summer 2019

The "Out of Network ATM fee" can be avoided by only using ATM machines from the specific bank in which you have a checking account. This means that if you use an ATM machine from a different bank, you may be charged a fee for the transaction. Therefore, to avoid this fee, it is recommended to use ATMs that are affiliated with your own bank.

The correct answer explains that as you move farther from your job, housing costs decrease, which means that you can find cheaper housing options. However, at the same time, travel costs increase because you have to commute a longer distance to reach your workplace. This relationship implies that there is a trade-off between housing costs and travel costs, where one decreases while the other increases as you choose to live farther away from your job.

If you have an account with Wells Fargo and use another bank's ATM machine, such as Bank of America, you will be able to withdraw cash. However, since it is not your own bank's ATM, the other bank will charge you a fee for using their services. Therefore, the statement is true.

When you make a purchase using a debit card, the money comes directly from the balance in your checking account. Therefore, you can only spend up to the amount that you have in your account. This means that you cannot spend more than what is available in your account balance.

The statement is false. People in the US with only a high school diploma generally have a higher unemployment rate compared to those who have earned a Bachelor's degree. This is because individuals with higher education qualifications are often more competitive in the job market and have a wider range of job opportunities available to them. On the other hand, individuals with only a high school diploma may face more challenges in finding employment, leading to a higher unemployment rate.

The correct answer is $731.57. This is the balance in the checking account on October 28, 2003.

Basic car insurance is legally required in order to drive a car. This is because car insurance provides financial protection in case of accidents or damages caused by the insured driver. It ensures that the driver has the means to cover the costs of any injuries or property damage they may cause while driving. Without car insurance, drivers would be personally responsible for all expenses, which could lead to financial hardship and potential legal consequences. Therefore, it is necessary to have basic car insurance to legally operate a vehicle.

The correct answer is $464. This means that someone who has graduated with a Bachelor's degree earns $464 more per week than someone who graduated with a high school diploma.

A good amount to save each month is 10% of your net salary, and more if you can. This ensures that you are consistently setting aside a portion of your income for savings, which can help you build a financial cushion and reach your long-term goals. Saving more than 10% if possible allows for even greater financial security and flexibility.

The budgeting exercise revealed that the cost of renting an apartment varies depending on the location and the quality of the apartment. The range of $500-$3,000 was determined as a reasonable expectation for apartment rental costs, taking into account these factors.

When you are buying something at a store with a debit card, the checkout person cannot make a deposit for you. A debit card transaction is a form of payment, not a method of depositing money into your checking account.

The correct answer is that the direct deposit increases the balance in John's account by the amount of the deposit. This means that when John receives a direct deposit, the money is added to his account, increasing the total balance. This is a common feature of direct deposits, where the funds are electronically transferred into the recipient's account.

The amount that would be deposited in your bank account, or your "take home pay," is $3,659.50. This is because after considering taxes, medicare, and social security deductions from the gross salary of $5,000, the net salary is calculated to be $3,659.50.

Checking your bank statements on a regular basis is a good idea because it allows you to monitor the fees you are being charged and make necessary changes to avoid unnecessary fees. Additionally, it helps you catch any errors made by the bank or identify any other mistakes that may have occurred.

"Wants" are things that are not necessary for survival but are desired for personal satisfaction or enjoyment. Gifts you buy for family and friends, eating meals out at restaurants most nights, buying designer clothes, and going to concerts and taking expensive vacations are all examples of wants because they are not essential for basic survival. Housing and utilities, auto insurance if you own a car, and basic products like soap, shampoo, and toothpaste are considered needs because they are necessary for daily living.

The correct answer is $1,442.61. This is the total amount deposited in the bank account for the month.

The correct answer is roughly $1 million ($965,120 to be precise). This means that over a 40-year career, someone with a four-year college degree can expect to earn approximately $1 million more than someone with just a high school diploma. This value was calculated by subtracting the earnings of someone with a high school diploma from the earnings of someone with a Bachelor's degree over a 40-year period.

Having a checking account offers several advantages. Firstly, there is no need to carry cash, as transactions can be easily made using a debit card or mobile phone. This reduces the risk of cash being lost or stolen. Additionally, a checking account allows access to online and mobile banking options, providing convenience and flexibility in managing finances.

College provides value beyond just monetary gain. It offers the opportunity to experience a new place outside of one's immediate community, allowing for personal growth and exposure to different cultures and perspectives. Additionally, college provides access to new knowledge and ideas through academic courses and resources such as libraries. It also facilitates the formation of new relationships with fellow students and professors, which can lead to networking opportunities and potential collaborations in the future.

The budgeting exercise revealed that apartment rental costs vary significantly across different cities in the US. Additionally, it was learned that having a roommate or multiple roommates generally reduces the cost of apartment rent in any given city.

The transactions that reduce a checking account balance are paying your mortgage (home loan payment), paying a bill online, and using an ATM to withdraw cash from your account. Depositing cash in an ATM and receiving your paycheck through a direct deposit do not reduce the checking account balance as they add funds to the account.

The first statement is true because with a more expensive health insurance plan, the copay is lower, meaning you pay less out of pocket when visiting the doctor. The second statement is false because higher monthly payments for health insurance result in higher copays. The third statement is true because more expensive healthcare insurance plans often provide coverage for a wider range of hospitals and geographic areas. The fourth statement is false because most people will need health insurance at some point in their lives. The fifth statement is true because it is generally recommended that everyone should have health insurance for financial protection and access to necessary healthcare services.

The costs that should be in your budget when owning a car are the monthly loan payment if you borrowed money to buy the car, car insurance, an estimate for average maintenance costs, and gas or extra electricity costs depending on the type of car you have. These costs are essential for owning and maintaining a car, while other car-related items such as a new paint job are considered "wants" rather than "needs" and do not belong in the budget.

The correct answer is that net salary is the gross salary minus the amount the government takes out for taxes, social security, and medicare. This means that net salary is the amount of money you actually take home after all deductions have been made from your gross salary. Gross salary refers to the total amount of money you earn before any deductions are taken out.

You can withdraw money from a checking account by visiting a bank office, writing a check, using online bill pay or electronic transfer, and using a debit card to make a purchase at a store and get cash back. Calling the bank and asking them to send cash in the mail is not a valid way to withdraw money from a checking account.