Forbes Fictional List #2

This program will take about 10 minutes to complete.

NOTE: Financial education content for the program was taken from Cash Course, an interactive financial education program created by The National Endowment for Financial Education ® (NEFE ®) - an independent, nonprofit foundation committed to educating Americans on a broad range of financial topics and empowering them to make positive and sound decisions to reach their financial goals.

"Forbes Fictional 15" article was published in 2011 at forbes.com.

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Mr

Question 1 of 5

#9 on Forbes Fictional 15: Mr. Monopoly

Fortune: $2.6 B
Source: Real Estate
Residence: Atlantic City, New Jersey

A whiff of scandal surrounds Monopoly's recent release from Fort Dix Federal Correctional Institution, where he had been serving time for misappropriating funds from a bank error in his favor. Implacable foes Mr. Shoe, Ms. Dog and Mr. Thimble claim Monopoly – a.k.a. Rich Uncle Pennybags -- greased his release with a "get out of jail free card." Monopoly insists it was just a lucky roll of the dice. Finances much improved after collecting windfall $200 million just for passing "Go." Featured in the Hasbro board game Monopoly.

Question: Mr. Monopoly has made Atlantic City his money-maker. However, do other people really win in Atlantic City? According to Vegasclick.com, your chances of winning a state lottery are ____ than winning at a casino’s slot machine.

Better
The same
Worse

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Piggy

ANSWER: Better


LESSON FOR YOUR LIFE: Mismanaging Credit

If you are using a credit card and aren't sure how to manage credit wisely, you are gambling with your money!

Here's some tips for how to manage credit cards wisely:

Choosing a Credit Card

When choosing a credit card, there are many features — and several kinds of cards - to consider: Annual fees, service charges, interest rates, and benefits vary among credit card issuers. As a result, some credit cards that look like a great deal at first glance may lose their appeal once you read the terms and conditions of use and calculate how the fees could affect your available credit. Do your research and find the credit card that’s best suited to you.

Ultimately, you want to use credit responsibly. Your first choice should always be to pay as you go. However, when unexpected costs arise, having a low-interest credit card available is a good backup plan.

Smart credit card tips:

  • Pay your credit card balance monthly to avoid interest charges.
  • Limit yourself to one card and opt out of prescreened credit card offers that come in the mail.
  • Actively manage your account to help avoid credit card fraud.
  • If you do accumulate a large credit card balance, make a plan to pay it off quickly.

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Jo

Question 2 of 5

#11 on Forbes Fictional 15: Jo Bennett

$1.2 B
Source: Electronics, inheritance
Residence: Tallahassee, Fla.

Sabre Corporation CEO Jolene "Jo" Bennett turned a small Tallahassee computer parts manufacturer into dominant supplier of printers, fax machines and scanners. Recent achievements include the acquisition of regional paper company Dunder Mifflin; creating the award-winning "Print In All Colors" minority executive training program. Says you don't get to be a powerful woman by slacking off: "You get there by working hard or marrying rich, and I did both." Featured in the television series The Office.

Question: Currently, 12 FORTUNE 500 companies are run by women. Patricia A. Woertz runs the 39th company on the list. What company is it?

Archer Daniels Midland
Pepsi
Kraft

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Piggy

ANSWER: Archer Daniels Midland


LESSON FOR YOUR LIFE: Understanding How to Build Wealth

Jo gained wealth by inheritance. However, anybody can build wealth. Here's the millionaire's secret:

You might think the secret to building wealth is to make a lot of money. That certainly is one way. However, there are many stories of hard-working people with modest incomes who left hundreds of thousands of dollars to charity or to their alma mater when they died. Even with a modest income, you can set aside money and ensure a stable financial future by doing one simple thing: living within your means.

This simply means spending less than you earn and saving and investing the rest. If you're living within your means, you have enough money to pay your basic living expenses without going into debt by using credit cards or loans.

While you're in college, you may be tempted to put your tuition or books on a credit card, with every intention of paying off the balance next month. Try not to do this. If you can't pay the bill in full when it comes due, then you'll owe interest in addition to the cost of the items you purchased.

There are some expenses that generally require loans, such as a used car or a house, but debt shouldn't be used to help you pay for everyday expenses. Paying for everyday items with debt limits your choices because you're constantly caught paying for yesterday instead of moving toward tomorrow.

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Burns

Question 3 of 5

#12 on Forbes Fictional 15: C. Montgomery Burns

$1.1 B
Source: Energy
Residence: Springfield, U.S.

Long-time owner and operator of the Springfield Nuclear Power Plant is a master of cut throat capitalism, a man who once blocked out the sun over Springfield to increase electricity use. Burns' tyrannical management style is topped only by his viciously evil personal habits: Hobbies include stealing candy from babies, taunting immigrant laborers, releasing hounds on unwanted house guests. Featured in The Simpsons television series and films.

Question: Burns' evil ways helped him make money. However, there are ways to become rich without resorting to evil doings. According to the book “The Millionaire Next Door,” how to most millionaires earn their wealth?

By working for someone else
Through risky investments
By owning their own business

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Piggy

ANSWER: By owning their own business


LESSON FOR YOUR LIFE: Preventing Identity Theft

People like Burns like to find easy ways to make money - such as stealing money from other people through identity theft.

Here's some tips to help you prevent becoming a victim of identity theft:

Protecting Your Information

  • Vow to keep very little in your wallet—just your driver's license, student ID, maybe one credit card, and a little bit of cash. If you do lose your wallet, it will be much easier to take steps to cancel one credit card or notify authorities about just a few items than if you carry numerous credit cards and personal information.
  • Make photocopies of the cards and ID that you carry with you, and keep them in a safe place in your room.
  • Keep records of all your credit card numbers and their toll-free customer service numbers, bank account numbers, bank branch phone numbers, Department of Motor Vehicle phone number, and any other agencies that you may need to contact if you lose your wallet. Keep these in a safe place in your room.

Replacing Credit, Debit, and ATM Cards

Report the loss or theft of your credit cards and your ATM or debit cards to the card issuers as quickly as possible. Many companies have toll-free numbers and 24-hour service to deal with such emergencies. It's a good idea to follow-up your phone calls with letters. Include your account number, when you noticed your card was missing, and the date you first reported the loss.

Credit Card Loss or Fraudulent Charges

Your maximum liability under federal law for unauthorized use of your credit card is $50. If you report the loss before your credit cards are used, the card issuer cannot hold you responsible for any unauthorized charges. If a thief uses your cards before you report them missing, the most you will owe for unauthorized charges is $50 per card. Also, if the loss involves your credit card number, but not the card itself, you have no liability for unauthorized use.

After the loss, review your billing statements carefully. If they show any unauthorized charges, send a letter to the card issuer describing each questionable charge. Again, tell the card issuer the date your card was lost or stolen, or when you first noticed unauthorized charges, and when you first reported the problem to them.

Replacing Your Driver's License

If your driver's license has been lost or stolen, report the incident to your local police's non-emergency line (it is not necessary to call 911). This is especially important if the license has been lost or stolen as a result of a suspected crime. The local police will likely have forms you need to fill out to report the incident. Be sure to get a copy of the report. To get a new license, you must go to the Department of Motor Vehicles.

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Bass

Question 4 of 5

#13 on Forbes Fictional 15: Chuck Bass

$1.1 B
Source: Real estate
Residence: New York, New York

Tough year for the bad boy billionaire, who is locked in a battle for control of Bass Industries with his late-father's business rival Russell Thorpe. Many Manhattan real estate insiders think Bass will ultimately prevail: "Manipulative, deceptive, arrogant, greedy and shallow. He's a natural." Daytime wardrobe embraces three P's – purple, plaid and preppy. For night, three V's – vest, velvet and Valentino. Featured in Gossip Girl.

Question: Chuck does his homework before getting involved in any real estate venture. Likewise, before you decide to live on or off campus, you need to do your homework to make sure your move will really save you money. According to a SMMC survey of UNL students, what is the average amount of rent UNL students pay when sharing a 2-bedroom apartment with a roommate?

$500
$300
$350

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Piggy

ANSWER: $350


LESSON FOR YOUR LIFE: Comparing Costs: Residence Halls vs. Off-Campus

College students often think they can save money by living off campus. However, there are a lot of expenses that go with apartment living that you should consider before you make the move. Since you may or may not save money by moving out of the dorm, you’ll have to balance your reasons—which are not always just about money-with the costs.

Comparing Costs

Costs for off-campus housing add up quickly. The following list will help you consider the costs that could be associated with moving off campus.

  • Rent
  • Security deposit
  • Credit report
  • Utilities
  • Food
  • Transportation
  • Renters' Insurance
  • Household furnishings
  • Pets
  • Other

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Gordan

Question 5 of 5

#14 on Forbes Fictional 15: Gordon Gekko

$1.1 B
Source: Investments
Residence: New York City

The legendary corporate raider famously boasted "greed is good" in 1987, and made billions at the pioneering investment firm Gekko & Co. But when a plan to buy out Bluestar Airlines went awry, Gekko was convicted of insider trading and securities fraud. Following his release from prison in 2001, Gekko became an author and lecturer, and was one of the few voices to predict a bursting credit bubble. Featured in Oliver Stone's Wall Street films.

Question: Gekko predicted the bursting credit bubble. Experts agree which financial industry practice is most at fault for the economic recession?

Subprime mortgage lending
Increase in credit card accounts
Increase in money market accounts

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Piggy

ANSWER: Subprime mortgage lending


LESSON FOR YOUR LIFE: Understanding Credit Scores

When you are applying for a mortgage or auto loan, it's important to know your credit score and what your credit score means to the lender in order to make sure you are getting the best loan deal.

Your credit score is expressed on a scale between 300 and 850. This numeric credit rating system is also known as your FICO score. To come up with your score, several factors are considered together to measure your responsible use and repayment of borrowed money over time. The average credit score is in the range of about 700. To any potential creditor, a high credit score means you are likely to pay back borrowed money according to the terms you agreed to when you entered the loan agreement. Lenders view a low credit score (sub-prime) as evidence that you are late or not paying your bills. They see a high score as evidence of personal responsibility.

Individual creditors report details of your account activities to three major credit reporting agencies: Equifax, Experian, and TransUnion. These organizations analyze your credit risk level according to the following scoring criteria:

  • Bill paying habits: Do you pay rent, credit card bills, loan payments, and car payments on time?
  • Collections: Has a company been hired to collect an unpaid sum on behalf of one of your creditors?
  • Debt level: Is your total debt reasonable or do your balances indicate that you are approaching your maximum approved credit limit?
  • Credit history: Do you have 10 months or 10 years of responsible borrowing experience? The longer your experience, the better.
  • Recent activity: Have you personally applied for four or five credit cards over a short period of time? If so, credit-reporting agencies may assume you are in financial trouble.

Sub-Prime Credit Scores

Anything below a score of 620 to 650 can place you in the sub-prime borrowing category. “Sub-prime” is a general term in the lending industry used to identify borrowers who have had trouble making loan payments on time, filed for bankruptcy, or experienced other money problems. The credit performance of these borrowers is not as strong as the typical lender hopes for, so they are subject to sub-prime interest rates. "Sub-prime interest rates" are higher than those offered to higher-scoring borrowers. For example, mortgage loans based on a sub-prime score may be granted, but with an interest rate 1-2% higher than the best rates available, and with additional loan fees tacked on. This doesn’t sound like much, but when it comes to a home mortgage, it can easily make the difference between being able to buy a starter home or not.

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FINAL RESULTS

0-2 Correct

Learn more about financial success by scheduling a money management advising appointment at the UNL Student Money Management Center.

FINAL RESULTS

3-4 Correct

Learn more about financial success by scheduling a money management advising appointment at the UNL Student Money Management Center.

FINAL RESULTS

5 Correct

Learn more about financial success by scheduling a money management advising appointment at the UNL Student Money Management Center.