question 6,7

Available Oct 12 at 12am - Dec 7 at 11:59pm about 2 months Personal Finance Appendix Review Questions 1. How can a budget help you with your personal finances? What are the major steps involved in establishing a personal budget? 2. What is the difference between discretionary costs and non-discretionary costs? Illustrate the difference by giving examples. Why is this distinction important? 3. What is the purpose of a savings account? How much should be invested in this account? What is the best way to achieve your desired savings balance? 4. What is a credit score and why is it important? What are some key factors that influence an individual's score? How would you interpret a credit score of 500? Of 820? 5. Why is it important to begin investing early? Why is it important to diversify your investments? How is the return you expect to earn on various investments related to their risk? 6. What is common stock? How does it differ from corporate bonds? What are the two types of return on that could be earned by stockholders, and how do these returns differ? Why is common stock considered to be a riskier type of investment than bonds? 7. How are 401(k), 403(b) and 457 employee contribution retirement plans similar and how do they differ? How do these plans differ from IRAs? How do Roth plans differ from traditional plans? MacBook Pro Available Oct 12 at 12am - Dec 7 at 11:59pm about 2 months Personal Finance Appendix Review Questions 1. How can a budget help you with your personal finances? What are the major steps involved in establishing a personal budget? 2. What is the difference between discretionary costs and non-discretionary costs? Illustrate the difference by giving examples. Why is this distinction important? 3. What is the purpose of a savings account? How much should be invested in this account? What is the best way to achieve your desired savings balance? 4. What is a credit score and why is it important? What are some key factors that influence an individual's score? How would you interpret a credit score of 500? Of 820? 5. Why is it important to begin investing early? Why is it important to diversify your investments? How is the return you expect to earn on various investments related to their risk? 6. What is common stock? How does it differ from corporate bonds? What are the two types of return on that could be earned by stockholders, and how do these returns differ? Why is common stock considered to be a riskier type of investment than bonds? 7. How are 401(k), 403(b) and 457 employee contribution retirement plans similar and how do they differ? How do these plans differ from IRAs? How do Roth plans differ from traditional plans? MacBook Pro