Part 1

General Area: Health Care

Career Type: Surgery
Job: Cardiothoracic Surgeon
Typical Duties/ Responsibilities, Tasks, Activities Related to Job: Deals with the diagnosis
and management of surgical conditions of the heart, lungs and esophagus. Cardiothoracic surgery
is a testing, technical specialty which combines a need for understanding of cardiovascular and
respiratory anatomy and physiology, cardiac and thoracic pathology and a need to be technically
able. The most common operation performed is coronary artery bypass grafting in cardiac
surgery (75%) and the other work in cardiac surgery is largely valve operations. The most
common thoracic operation is lobectomy or pneumonectomy for carcinoma of the lung. The
specialty includes a need to be competent and able on the intensive care unit for the post
operative care of these patients. There are many research opportunities in this specialty and it is
expected that trainees will participate in research projects.
Consultant cardiothoracic surgeons operate usually about three days per week, have one out
patient clinic and are generally on call one in three or square in four. In addition there may be a
commitment to cardiothoracic transplantation and the care of cardiothoracic trauma. Consultants
generally tend to develop expertise in particular areas of the specialty. Consultants tend to divide
into three groups, cardiac surgeons, thoracic surgeons and combined cardiothoracic surgeons.
http://www.nhscareers.nhs.uk/explore-by-career/doctors/careers-inmedicine/surgery/cardiothoracic-surgery/

Performs patient histories and physical exams

Handles daily patient rounds (including the CVICU), patient education

and discharge summaries

Performs invasive procedures, such as thoracenteses, chest tube insertions,

placement of central venous, dialysis and Swan-Ganz catheters, arterial lines and
intra-aortic balloon pumps

Exhibits autonomy in the operating room when required

Retrieves vascular tissue, including greater and lesser saphenous veins

and/or radial arteries, for use as a bypass conduit

Often uses endoscopic retrieval methods and involved in the industrial

aspect of EVH

Performs first assistant duties on all adult and pediatric cardiac cases,
thoracic and major/minor vascular cases

Meets the specific needs of the attending surgeon, often assisting several
surgeons in a single practice

Has exacting knowledge of each surgeon's idiosyncrasies to expedite the

procedure and limit patient morbidity and mortality


Uses knowledge of medical model to promote synergistic relationship
between physician and PA

Has extensive knowledge of the pharmacologic effects of vasoactive/

cardiotonic drugs, ventilator management and artificial cardiac devices

Performs duties of a primary care PA

Manages other disease entities frequently encountered in the cardiac

population, namely hypertension, diabetes, COPD, asthma, hypothyroidism and others
https://www.aaspa.com/page.asp?tid=117&name=Cardiothoracic-Surgery&navid=34
Typical Job Setting/ Site/ Location: Cardiac surgeons can work in academic medical centers,
community hospitals, private group practices, solo medical practices or medical clinics. While
the cardiac surgeon's lifestyle differs with each type of employer, cardiac surgeons generally
work long hours and have busy on-call requirements. They may be called into surgery during offpeak hours for emergency surgeries such as bypass procedures or valve replacements in patients
who have had or are expected to have a heart attack.
http://www.ehow.com/about_5263627_cardiac-surgeon-job-description.html
Job Qualifications (including requisite skill sets) Must complete four years of medical or
osteopath school, a five-year residency program in general surgery and a two-or-three-year
fellowship in cardiothoracic surgery.
Requires a degree in medicine from an accredited school and is licensed to practice. May
require at least 2-4 years of cardiothoracic surgery experience. Familiar with standard concepts,
practices, and procedures within a particular field. Relies on extensive experience and judgement
to plan and accomplish goals. Performs a variety of tasks. May lead and direct the work of
others. A wide degree of creativity and latitude is expected. Typically reports to the chief of
surgery.
http://www1.salary.com/Cardiothoracic-Surgeon-salary.html

Salary Range (entry level to veteran) and Opportunities for Advancement

$332,000- $514,000. The median annual cardiothoracic surgeon salary in the U.S is $412,000
http://www.healthcareworkersalary.com/physicians/cardiothoracic-surgeon-salary/
Job Prospects / Outlook:
http://study.com/articles/Cardiac_Surgeons_Career_Information_for_Becoming_a_Cardiac_Surg
eon.html
Its projected to increase by 18% from 2012 to 2022
Education Requirements (Majors, Degrees)

Since they only require prospective students to have taken certain prerequisite courses in their
undergraduate studies, you can technically major in anything. Bachelor Degree in Pre-Med or
these common majors that can be combined with pre-medical courses for a career path in
surgery: Human Physiology, Biology, Health Sciences, Chemistry.
Additional Special Licenses, Certifications, Training, Association Memberships,
Patents, Published Work, Internships / Apprenticeships, Experiences
After college, you must get a doctoral degree in order to be accepted into a residency program.
The four years of medical study includes both classroom study and laboratory experience. In
general, the curriculum also includes the legal and ethical aspects of medicine. The last two years
of the degree course provides students with firsthand experience on all the important branches of
medicine, thereby aiding students' decision-making process when selecting a specialty.
Residency can take anywhere from three to eight years. Although it does not confer a degree, it is
mandatory. It is only at the end of residency that doctors are certified and given the freedom to
practice as medical professionals. Residency is vital for enhancing skills and learning to be more
independent, responsible and understanding. On successful completion, the American Board of
Surgery's two-part exam must be passed to be certified as a general surgeon.
http://classroom.synonym.com/type-degrees-need-general-surgeon-2910.html

Product: Future Rsum

Imagine yourself 10 or 15 years in the future. Taking into consideration the information
youve just uncovered in Career Planning, what will your rsum look like? Where do you
anticipate or hope to be in your career? What jobs, education, experiences will have helped
get you there? You know what goes on a rsum. Now create one that youd like Future You
to have. Your rsum will be submitted electronically and posted on your eSEP site.

Part 2
Income & Living Situation
Influence of Core Values: family-centered, urban lifestyle

 Prospective Salary: Five years out of college, I will still be in Medical School, therefore I
wont have a prospective salary, however, I will probably have approximately $100,000 worth of
student loan.
City of Residence: Glendale
Employment Site: John C. Lincoln Hospital: 250 E. Dunlap Ave Phoenix, AZ (602) 870-6060
Type of Residence: Owned; approximately fifteen minutes from Downtown Glendale.
Size & Composition of Household: I choose to stay with my family. Its definitely not because
Im lazy or afraid of venturing out into the real world by my lonesome, its simply because I love
my family a lot also because we have a fantastic five-bedroom House that I would rather not
leave behind. Also I know for a fact that Medical School will rob me of all of my money, so by
not buying my own house, Ill be able to save more money.

Personal Financial Literacy Standards

Introduction:
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Every transaction has a cost; nothing is free

The Economic Way of Thinking: the idea of considering benefits and costs
People try to determine how they can get the most benefit for the least cost
Scarcity; people must make choices due to our limited amount of resources
Opportunity cost: your second best choice- the choice that you gave up
Incentives: a reward for our behaviour; used to measure our costs and benefits
Disincentive: a punishment for our behavior
PACED Decision-Making
P= state the Problem
A= List the alternatives
C=identify the criteria
E=evaluate the options, based on criteria
D=make a decision
Trade-off: act of giving up one thing to get more of something else
Chapter 1.1:Jobs vs. Careers
Formal educational experience: college or vocational training
Informal educational experience:job experiences
Primary Purpose: earn an income to meet ones basic needs and pursue their financial goals
Jobs: anything that has to be done and provides income to meet an individuals basic needs.
Provides the basics- cash and activity
Career: a profession or a vocation that is pursued as your lifes work. Allows various
opportunities for advancement, for personal growth, for personal challenges and for personal
satisfaction

Human capital: ones skills, abilities, experiences and interests that determines how successful
you are

Chapter 1.2: Income and Taxes

Gross Income: our income before any deductions or exemptions.
Net Income: otherwise known as your take home pay; your income after all deductions and
exemptions
Deductions: anything subtracted from that gross amount. Most are voluntary, paying state and
federal taxes is required.
Exemptions: legal allowances that reduce the amount of income taxes subtracted from our
paycheck.
FICA (Federal Insurance Contributions Act)- another name for Social Security. Covers both
Social Security and Medicare, which are both federal programs providing benefits for people
who are retired, disabled or children of deceased workers
Taxes are used to support a variety of programs

Chapter 1.3: Goal-Setting

Short-term goals: can be reached in a few months
Medium-term goals: 1-3 years
Long-term goals: take five years

Chapter 1.4: Managing Your Income

Budget: monthly spending plan, helps put people in control of their incomes an provides a safety
net for emergencies. Its personal and should align with their goals.
Tracking your spending is the only way to know where your money goes. It also helps you know
if you are spending money in a way that will accomplish your goals.
Income: money that you receive from employment or other sources
Fixed Income: income set each month
Variable Income: can fluctuate each month
Expenses: costs for the products you buy
Fixed expenses: payments/ expenses that are the same from month to month
Chapter 2.1: Somebody Has to Pay

Ability to pay: The belief that people should be taxed according to their ability to pay, regardless
of the benefits they receive. The U.S. individual income tax is based on this principle.
Benefits-received principle: The belief that people should be taxed according to the benefits they
receive from the good or service the tax supports. The gasoline tax is an example.
Free rider: One who enjoys the benefits of a good or service without paying for it. Progressive tax: A tax that takes a larger percentage of income from people in higher-income
groups than from people in lower-income ones; the U.S. federal income tax is an example.
Regressive tax: A tax that takes a larger percentage of income from people in lower income
groups than from higher-income ones. Sales taxes and excise taxes are examples.

Taxes: Government fees on business and individual income, activities, or products to support
government programs.
The ability to pay theory says that people who can afford to pay taxes should pay more than
those with limited ability to pay.
The benefits received theory is based on the premise that the government should tax people who
receive the goods and services provided by those taxes.
A tax is regressive if the proportion of income paid in taxes decreases as income decreases.
The free rider problem happens when people benefit from using goods and services without
paying for them.
Chapter 2.2: Taxes: Voluntary Compliance
Ethics: A set of principles or beliefs that govern an individuals actions.
Morals: A system of values and principles of conduct that promotes good customs and virtues
while condemning bad customs and vices.
Standard of living: The quality and quantity of goods and services available to people, and the
way these goods and services are distributed within a country.
Quality of life: The overall enjoyment of life and sense of well-being.
Voluntary compliance: A system that relies on individual citizens to report their income freely
and voluntarily, calculate their tax liability correctly, and file a tax return on time, according to
the rules established by the Internal Revenue Service.
The Internal Revenue Service (IRS), a division of the U.S. Department of Treasury, is charged
with the responsibility of maintaining confidence in the federal tax system.
In addition, your tax dollars provide public goods and services designed to increase our
countrys standard of living and quality of life.
It also helps us avoid being financially penalized or imprisoned by the IRS.
Chapter 3.1:Finding Financial Services
ATM (automatic teller machine): An electronic machine that bank customers and credit union
members can use to withdraw cash and make other financial transactions.
Automatic deposit and payment: The deposit of wages or other income directly into a customers
bank account.
Bank: A state or federally chartered, for-profit business owned by stockholders that provides
savings accounts, checking accounts and other financial services to its customers.
Check cashing services: An institution that cashes checks immediately for a fee.
Checking account: A bank or credit union account that allows withdrawals by writing a check.
Credit card: A plastic card authorizing the delivery of goods and services in exchange for future
payment with interest.
Credit union: A state or federally chartered, not-for-profit financial cooperative that provides
financial services to its member-owners who have met specific requirements.
Debit card: A plastic card used to deduct a purchase amount directly from your checking
account; also called a check card.
Financial services: The different kinds of services provided by financial institutions such as
banks, credit unions, insurance companies and other similar businesses.

Financial institution: Any business providing financial services.

Insurance company: A company that guarantees compensation for specific forms of loss,
damage, injury, or death.
Investment bank: A business that participates in buying and selling stocks, corporate bonds and
government bonds.
Money transfer: The process of moving money from one account to another account.
Mortgage company: A company that make loans for the purchase of a house or other real estate.
Online banking: The process allowing customers to make financial transactions on a secure
website operated by their financial institution; also called Internet banking.
Overdraft: A description of what happens when a withdrawal (checks, ATM, etc.) is greater than
the amount of money in a checking account.
Overdraft protection: A checking account feature that provides an automatic loan from their
financial institution to cover overdrafts.
Safety deposit box: A protected location in a secure bank vault where individuals can store
valuables for a small fee.
Savings account: An interest-bearing account at a financial institution.
Stock brokerage: Individuals and companies who buy and sell stocks for investors.
Financial service providers is a term used to describe all of the different types of businesses
similar to a bank. Some of these organizations are banks, credit unions, credit card companies,
insurance companies, stock brokerages, mortgage companies, and investment banks.
The fees are part of the costs for you to consider when making financial choices. Other costs
include your time, your ability to access the services, and your level of skill using them.
Chapter 4.1: Tracking Your Money
Automated Teller Machine (ATM): A computer terminal used to conduct business with a
financial institution or purchase items such as postage stamps or transportation tickets; also
known as a cash machine.
Check: A written order directing a bank or credit union to pay a person or business a specific
sum of money.
Debit card: A plastic card that provides access to electronic funds transfer (EFT) from an
automated teller machine (ATM) or a pointof-sale (POS) terminal
A check is a written document ordering a bank, credit union, or other financial institution to
transfer money from your account to another account.
A debit card is the plastic version of a check.
How to Write a Check:
Step 1: Write the date in the upper right hand corner. You can use any format for the date as long
as it can be read. Use the current date; do not write a check for a future date (called a postdated
check).
Step 2: Write the name of the person or company receiving your check on the line that starts with
Pay to the Order of or Payable to. This person or company is called the payee.
Step 3: Write the dollar amount of the check in numbers in the small space that starts with a
dollar sign ($) so that it reads like this: $125.76.

Step 4: Write the same amount using words for whole dollar amounts and a fraction for the cents
on the line ending with the word Dollars. Also, be sure to draw a straight line to fill up the
remaining space on the line. It should look like this:
One hundred twenty-five and 76/100 ------------- Dollars.
Step 5: Sign your name on the signature line at the lower right.
Step 6: If making a payment like a credit card bill or cell phone bill, write your account number
on the line following Memo. This line can also be used for any other special notations that need
to be made on the check. The next two steps are just as important as what you write on your
check. They involve knowing how to correctly record your check in your check register or
check ledger, a booklet that comes with your preprinted checks. Taking one minute to write
down this information may save you a lot of money and prevent you from paying fees for writing
checks or using your debit card when there is not enough money in your account.
Step 7: Write down the check number, date, payee and amount in the check register or ledger at
the front of your checkbook. Also including the ATM transaction number is applicable.
Step 8: Subtract the amount of the check so you will know how much you have left in your
account.
Managing Account: writing down every withdrawal or deposit into your account and every fee
you pay for those services. Subtract all withdrawals and fees from your balance and add all
deposits so you know how much money remains in your account. Withdrawals include writing
checks, making purchases with a debit card, and using ATMs to get cash.
-

Your bank statement is your opportunity to verify that the bank has not made a mistake with your
money.

Chapter 5.1: Saving and Investing: Getting Started

Investing: Purchasing securities such as stocks, bonds, and mutual funds with the goal of
increasing wealth over time, but with the risk of loss. Setting aside money for future income,
benefit, or profit to meet long-term goals; using savings to earn a financial return.
Liquidity: The quality of an asset that permits it to be converted quickly into cash without loss of
value. For example, a checking account is more liquid than real estate.
Opportunity Cost: The value of the second-best alternative that a person gives up when making
one choice instead of another.
Risk: A measure of the likelihood of loss or profit on an investments rate of return.
Saving: The process of setting income aside for future spending. Saving provides ready cash for
emergencies and short-term goals, and funds for investing.
Savings: Money set aside for a future use that is held in easily accessed accounts, such as savings
accounts and certificates of deposit (CDs).
Savings account: A financial institution deposit account that pays interest and allows
withdrawals.

Saving is more than just spending less; it also involves deciding what to do with the extra
money.
Making decisions about savings involves opportunity costs. In other words, what opportunities
would you give up today to fund your future goal?
Five Easy Ways to Save Money Save your pay raises; do not spend them. Save your income tax
refunds; do not spend them. Save your change in a jar, and deposit it into your savings account.
Reduce food expenses by avoiding specialty drinks and supersizing. Wait at least one week
before making an impulse purchase.

Two different ways to save money:

1) Putting it in a safe place like a bank (it will earn a small amount of interest)
2) save money using government saving bonds, money market accounts, or certificates of deposits

Chapter 5.2: The Rule of 72

Compounded interest: Interest earned not only on the principal but also on the interest already
earned.
Principal: The original amount of money deposited or invested.
Rule of 72: The length of time, in years, it takes an amount of money saved to double when it
receives compound interest. This length of time can be found by dividing the interest rate
(expressed as a whole number) into 72.
Simple interest: Interest calculated periodically on the loan principal or investment principal
only, not on previously earned interest.
When you put money into a savings account, you are loaning the use of your money to the bank
while it is deposited in your account. In return the bank guarantees your money is available when
needed, making the loan very safe. You receive interest payments as compensation for providing
them the use of your money

Two Different Ways Interest can be computed:

1) Simple Interest
2) Compound Interest
-

The process that compounding interest entails explains why its important to start saving now. As
you get closer to your personal and financial goals, your money will continue growing at a faster
pace.
Chapter 5.3: Saving and Investing Tools

Certificates of deposit: A certificate issued by a bank to a person depositing money in an account

for a specified period of time (often six months, one year, or two years); a penalty is charged for
early withdrawal from CD accounts.

Corporate bonds: A certificate representing the purchasers agreement to lend money to a

business on the promise that the debt will be paid, with interest, at a specific time.
Money Market Mutual Funds: A fund restricted by law to investing in the short-term money
market. MMMFs provide low risk and low returns, but they maintain their investment value.
Mutual funds: An investment tool that pools the money of many shareholders and invests it in a
diversified portfolio of securities, such as stocks, bonds, and money market assets.
Rate of return: How fast money in savings account or investment grows.
Risk: A measure of the likelihood of loss or profit the uncertainty of an investments rate of
return. Savings accounts: A financial institution deposit account that pays interest and allows
withdrawals. Savings bonds: A document representing a loan of more than one year to the U.S.
government, to be repaid, with interest on a specified date. Stocks: An investment that represents
shares of ownership of the assets and earnings of a corporation.

Saving Strategies
saving account
certificate of deposit
government saving bonds
money market mutual funds
checking accounts

Investing Strategies
Mutual funds
stocks
corporate bonds

Chapter 5.4: Time is Money

Asset class: A group of investments with similar characteristics.
Diversification: Investing in a variety of stocks, bonds, money market accounts, etc., in order to
spread risk.
Equities: A group of investments involving ownership of assets.
Fixed income class: A group of investments involving loans made to someone else.
Inflation: A rise in the general or average price level of all the goods and services produced in an
economy.
Risk tolerance: A measure of the likelihood of loss or profit the uncertainty of an investments
rate of return.
Following is a list of asset classes, from least risky to more risky:
Fixed Income Items
Bank Accounts: Immediate access to cash; insured by the FDIC
Certificates of Deposit Time varies based on contract; insured by FDIC
Government Bonds Money loaned to the U.S. government
Municipal Bonds Money loaned to a municipality (often a city)
Corporate Bonds Money loaned to a business corporation

Equity Items
Large Cap Stocks Ownership in large companies S
mall Cap Stocks Ownership in small companies
International Stocks Ownership in foreign companies
Commodities Ownership of hard assets such as gold or oil (usually in a mutual fund)
Microcap Stocks Ownership in very small companies with a high rate of failure

Chapter 6.1: Planning for Your Retirement

Annuity: A contract between an individual and an insurance company where the individual
makes a series of payments that are invested by the company and repaid to the individual at a
later date, generally during retirement.
Financial Risk: The chance that an individual, business or government will not be able to return
money invested. 401(k): A retirement plan that allows employees in private companies to make
contributions of pre-tax dollars to a company pool that is then invested in stocks, bonds, or
money markets.
Fraud Risk: The chance that an investment has been misrepresented.
Individual Retirement Account: An account in which an individual may set aside earned income
in a tax-deferred savings plan for his or her retirement.
Inflation Risk: The chance that the rate of inflation will exceed the rate of return on an
investment.
Market Risk: The chance that the value of an investment will go down because of a change in
supply and demand.
Social Security: A federal system of old-age, survivors', disability and hospital care (Medicare)
insurance which requires employers to withhold (or transfer) wages from employees paychecks
and deposit that money in designated accounts.
Social Security was originally designed as supplemental income for people over the age of 65.
In other words, it is supposed to be only one source of income when you retire.
Chapter 6.2: Longevity and Retirement
Life expectancy: A statistical measure of the average length of life from birth to death.
Lifestyle: The way people choose to live their lives, based on values they have chosen.
To develop a successful plan, you would want to know how much money you will need each
year. Generally, you will need somewhat less than the income you need while working because
most retirees have fewer expenses than people who are workingespecially younger workers
who still have children at home. However, the amount you need really depends on your plans for
retirement.
Following are three steps to consider if you want to increase your retirement savings.

1. Rethink your goals. If your goal is to take a European vacation each year, you may need to
adjust those plans and visit a local lake instead.
2. Postpone your retirement. You can work more years and accumulate more money in your
retirement account, or take a different job and supplement your retirement earnings with money
earned on your job.
3. Increase your contributions to your retirement account. Putting more money aside now
increases the possibility of having more money later.

Chapter 7.1: Remember the Interest

Credit: An agreement to provide goods, services, or money in exchange for future payments with
interest by a specific date or according to a specific schedule; the use of someone elses money
for a fee.
Collateral: Something of value (often a house or a car) pledged by a borrower as security for a
loan. If the borrower fails to make payments on the loan, the collateral may be sold; proceeds
from the sale may then be used to pay down the unpaid debt.
Comparison shopping: The process of seeking information about products and services to find
the best quality or utility at the best price.
Interest: Payment for the use of someone elses money; usually expressed as an annual rate in
terms of a percent of the principal (i.e., the amount owed).
Installment credit: A loan repaid with a fixed number of equal payments.
Interest rate: The percentage rate of interest charged to the borrower or paid to a lender, saver, or
investor.
Loan agreement: A type of contract between the borrower and the lender explaining the
requirements of fulfilling the loan.
Mortgage: A long-term loan to buy real estate including land and the structures on it.
Secured credit: Credit with collateral (i.e., a house or a car) for the lender.
Noninstallment credit: Single-payment loans and loans that permit the borrower to make
irregular payments and to borrow additional funds without submitting a new credit application;
also known as revolving or open-end credit.
Unsecured credit: Credit without collateral, such as credit cards.
Borrowing money does not mean that we have more money. In fact, it is the opposite. Borrowing
money means we are using tomorrows income to buy things today.
Some of the basic components of a loan agreement include:
Amount the exact amount you are borrowing;
Interest rate the rate of interest you will be charged;
Payment the exact amount you are required to pay back to the lender and how frequently that
payment should be made (weekly, monthly, annually, etc.);
Prepayment a special clause that allows you to make additional payments and pay off the loan
faster;
Late fees the additional amount owed if you are late with a payment; and,
Default what happens if you fail to make the payments.

Chapter 7.2: Its in Your Interest

-

Credit: An agreement to provide goods, services, or money in exchange for future payments with
interest by a specific date or according to a specific schedule. The use of someone elses money
for a fee.
Collateral: Something of value (often a house or a car) pledged by a borrower as security for a
loan. If the borrower fails to make payments on the loan, the collateral may be sold; proceeds
from the sale may then be used to pay down the unpaid debt.
Comparison shopping: The process of seeking information about products and services to find
the best quality or utility at the best price.
Interest: Payment for the use of someone elses money; usually expressed as an annual rate in
terms of a percent of the principal (the amount owed).
Installment credit: A loan repaid with a fixed number of equal payments.
Interest rate: The percentage rate of interest charged to the borrower or paid to a lender, saver, or
investor.
Loan agreement: A type of contract between the borrower and the lender explaining the
requirements of fulfilling the loan.
Mortgage: A long-term loan to buy real estate including land and the structures on it.
Secured credit: Credit with collateral (for example, a house or a car) for the lender.
Noninstallment credit: Single-payment loans and loans that permit the borrower to make
irregular payments and to borrow additional funds without submitting a new credit application;
also known as revolving or open-end credit.
Unsecured credit: Credit without collateral, such as credit cards
If you cannot afford to pay off your credit card bill each month, then rethink your decision to
charge your purchase. Only you can weigh the cost of buying on credit against the benefit of
having it today.
Chapter 7.3: Your Credit Score

Credit bureau: An establishment that collects and distributes credit history information of
individuals and businesses.
Credit history: A record of borrowing and repayments.
Credit report: An official record of a borrowers credit history, including such information as the
amount and type of credit used, outstanding balances, and any delinquencies, bankruptcies, or
tax liens.
Credit score/rating: A measure of creditworthiness based on an analysis of the consumers
financial history, often computed as a numerical score, using the FICO or other scoring systems
to analyze the consumers credit.
FICO: The most commonly used credit score. The name comes from the Fair Isaac Corporation,
which developed the scoring model.

Negative information, such as late payments and loan defaults, stay in your credit files for seven
years.
The best way to maintain a positive credit history is to control your level of debt and pay your
bills on time.
Chapter 7.4
Personal Financial Literacy

Consumer credit legislation: Any law that is designed to protect consumers, especially by
ensuring that consumers have access to accurate information about products and services related
to financial transactions.
Legislations:
Truth in Lending Act (1969)
Fair Credit Reporting Act (1971)
Fair Credit Billing Act (1975)
Equal Credit Opportunity Act (1975)
Consumer Leasing Act (1976)
Electronic Fund Transfer (EFT) Act (1976)
Fair Debt Collection Practices Act (1978)
Fair Credit and Charge Card Disclosure Act (1989)
Consumer Credit Reporting Reform Act (1996)
Credit Repair Organizations Act (1996)
Chapter 8.1: Credit Cards: More than Plastic

Credit card: A plastic card that authorizes the delivery of goods and services in exchange for
future payment with interest, according to a specific schedule.
Revolving credit: A consumer line of credit that can be used up to a certain limit or paid down at
any time. You can use the amount for which you are approved as long as you continue making
payments on it
Making minimum payments on your credit cards means you are overspending or overcharging
on your cards
If you are not paying off your credit card balance in full every month, then you are increasing the
cost of your purchases and reducing the amount of money you could put in savings to meet your
future goals.
Credit Card Statement:
Purchases or new charges
Payments and credits
Due date or pay-by date
Credit Limit

Chapter 8.2: Shopping Online

Online Shopping Tips:

Know exactly with whom you are dealing. Confirm the online sellers physical address and
phone number in case you have problems or questions and need to contact them.
Know exactly what you are buying. Carefully read the sellers description of the product,
including the fine print.
Know exactly the terms of the deal. Understand refund policies, warranties, delivery dates, etc.
Know exactly how much you will be charged. Include sales tax and shipping and handling in the
total cost of the order.
Pay by credit card or charge card. Never send cash or a check; credit or charge cards provide
more consumer protection in case of problems.
Print and save records of your online purchases. Keep them in a safe place until the transaction is
completed and you are satisfied with your purchase or the warranty has expired.
Check the sites security. Look for indicators that the site is secure, like a lock icon on the
browsers status bar or a URL for a Website that begins https: (the s stands for secure).
Check the sites privacy policy. If you cannot find a privacy policy or do not understand it, go
elsewhere to shop.
Benefits of Buying Online: stores never close, no parking problems, no aggressive salespeople,
easy to compare products and prices, can find products not available locally, no local sales tax,
bargain prices
Cost of Buying Online: must wait for delivery, shipping and handling fees, reliability of sellers is
difficult to determine, difficult to negotiate prices and payment terms, cannot physically see or
handle the actual product before purchasing, delay in receiving products, especially if they are
put on backorder and you are not notified immediately, greater potential to receive inferior
products or be deceived.

While credit cards provide the greatest protection for online shopping, be careful not to
overspend since those charges must be repaid.
Chapter 9.1: Beware! Consumer Fraud

Federal Trade Commission: A federal agency that enforces consumer protection.

Fraud: Someone who knowingly deceives you for their own personal gain.
Identity theft: Using a persons name or personal information without the persons permission to
steal money or get other benefit.
Tips to Avoid Being a Victim of Fraud:

The greater the potential return, the greater the risk.

Investments seldom exist without some risk involved.
Always get all of the information in writing before you give away any money.
Never let emotions interfere with your business affairs.
Never invest what you cannot afford to lose.
Legitimate offers will always be there tomorrow.
Take time to do careful research. If an offer sounds too good to be true, it probably is.
Do not send cash by mail, bank transfer, or messenger.

Common Kinds of Fraud:

Bait and Switch
Bankruptcy Fraud
Confidence trick or confidence game
embezzlement
false advertising
false billing
forgery
health fraud
identity theft
insurance fraud or false insurance claims
long firm
marriage fraud
ponzi scheme
security fraud

Chapter 9.2: Beware! Identity Theft

Federal Trade Commission: A federal agency that enforces consumer protection.
Fraud: Someone knowingly deceives you for his/her own personal gain.
Identity theft: Using a persons name or personal information without the persons permission for
the purpose of stealing money or to get other benefits.
How ID Thiefs get information about you:
Dumpster Diving
Skimming
Phishing
Changing Your Address
Stealing
Pretexting
Hacking

Steps to Take if Victimized:

1) Contact the Fraud Division
2) Contact Credit Card Companies
3) File a Complaint

4) Contact Local Police

Chapter 10.1: Housing Alternatives

Apartment: A room or suite of rooms designed as a residence and generally located in a building
occupied by more than one household.
Condominium: A building or complex in which units of property, such as apartments, are owned
by individuals and common parts of the property, such as the grounds and building structure, are
owned jointly by the unit owners.
House: A structure serving as a dwelling for one or more persons, especially for a family.

Think About Factors such as:

Location
Space Issues
Amenities
Safety
How long you plan on living there

Use PACED Decision-Making Model when making decisions about housing

Chapter 10.2: Renting an Apartment

Landlord: A person who owns property and rents it to another.
Lease: A written contract specifying the terms for the use of an asset and the legal responsibilities
of both parties to the agreement, such as a property owner and tenant.
Rent: A periodic payment for a place to live.
Tenant: A person who pays rent; the legal name for a renter.
Most landlords will ask you to inspect your apartment before you move in and make note of any
needed damages or repairs. Be sure you do a thorough inspection and report anything that needs
work as requested. Otherwise, you may be held responsible for the damages.
Chapter 10.3: Buying a House
Closing costs: Costs paid when buying a house or real estate.
Down payment: The part of the purchase price paid in cash up front, reducing the amount of the
loan or mortgage.
Equity: The difference between how much a house is worth and how much is owed on it.
Mortgage: A loan to finance the purchase of real estate, usually with specified payment periods
and interest rates.
Financing a House:
Preapproval:
Closing Costs: expenses you need to pay when getting a housing loan.
Down payments: required to protect the lender in case you default (or fail to pay) your loan.

THREE WAYS TO REDUCE YOUR MORTGAGE COSTS

1. Make a larger down payment. It lowers the amount of money you borrow. If you borrow less,
you will pay less interest which reduces the overall cost of your loan.
2. Shop around for interest rates. The lower the annual interest rate, the less interest you will pay.
3. Make extra payments on your loan. The faster you pay off the loan, the less interest you will
pay. When making an extra payment, be sure to put a note on your check requesting the payment
go toward the principal.

QUICK HOUSE BUYING TIPS

know how much you can afford.
get pre approved before starting your housing search.
Do not use all the money the bank will lend.
Do not buy the most expensive house on the block.
Chapter 11.1: Identifying Risk

Risk: A measure of the uncertainty of an investments rate of return; possible losses involving
income or standard of living; the possibility of a loss from peril to people or property covered by
insurance.
A good risk management plan has two requirements. First, be aware of what risk problems you
are going to face. Second, gather the information you need to manage the potential risk.
Chapter 11.2: Different Type of Insurance

Claim: A written request submitted to your insurance carrier to cover a loss.

Deductible: The dollar amount or percentage of a loss that is not insured, as specified in an
insurance policy.
Premium: The fee paid for insurance protection
Copayment: The amount you will have to pay each time you visit a health care provider
Coinsurance: The percentage of your medical costs you will need to pay after meeting your
deductible
Chapter 11.3: Using Insurance to Manage Risk
Coinsurance: The percentage of the costs of medical services paid by the patient.
Copayment: An amount of money that the member or insured pays directly to a provider at the
time services are rendered.
Deductible: The dollar amount or percentage of a loss that is not insured, as specified in an
insurance policy.
Insurance Companies will consider the following risk factors when setting your insurance
premium:

driving record
type of car you drive
theft
your age
where you live
credit report score
Chapter 12.1: Risky Business
Dependent event: The outcome of one event affects the outcome of another, changing the
probability of the second event.
Gambling: Taking risks with personal finances or personal assets.
Independent event: The outcome of one event has no affect on the outcome of another; both
events have the same probability.
Predictability: Telling or forecasting about something in advance of its occurrence by means of
special knowledge or inference.
Probability: The chance or likelihood that something will happen.
Chapter 13.1: Managing High Levels of Debt
Bankrupt: A person or company with insufficient assets to cover their debt.
Bankruptcy: A state of being legally released from the obligation to repay some or all debt in
exchange for the forced loss of certain assets. A courts determination of personal bankruptcy
remains in a consumers credit record for 10 years.
Consumer credit counseling: Services offered by organizations that help consumers find a way to
repay debts through careful budgeting and management of funds.
Creditor: A person or company to whom money is owed.
Debt consolidation loan: A single loan that replaces the debt owed by multiple loans, often with a
lower monthly payment and a longer repayment period.
Financial counseling: Generally the same as consumer credit counseling.
Garnishment: A legal warning concerning the attachment of property to satisfy a debt.
Home equity loan: A loan secured by a primary residence or second home at the amount where
the fair market value exceeds the over the debt owed on the property.
Repossession: To take possession of property in which the owner is behind in payments.
Tax dollars spent on bankruptcy courts and the people who work there cannot be spent on other
public goods and services.
Chapter 14.1: Charitable Contributions
Charitable giving: The act of giving to charitable organizations or to those in need.
Cost/benefit analysis, risk/reward relationship: A tool used to choose among alternatives involves
weighing the cost(s) of a product or service against the benefit it will provide.
Gifts in-kind: A non-cash contribution to a charitable organization which can be given a cash
value.
Tax deduction: An expense that a taxpayer can subtract from taxable income. Examples include
deductions for home mortgage interest and for charitable gifts.

Chapter 14.2: Checking out Charitable Groups

Charitable giving: The act of giving to charitable organizations or to those in need.
Cost/benefit analysis, risk/reward relationship: A tool used to choose among alternatives involves
weighing the cost of a product or service against the benefit it will provide.
Nonprofit organization: A legal organization providing services or activities without commercial
or monetary gain; organized for purposes other than earning a profit.
It is much better to check out a group or organization before you get involved. After all, if you
are going to invest your time and your money, you want to make the most informed choice
possible.