DSST Personal Finance study plan

Build a working vocabulary of credit instruments: distinguish revolving credit, installment credit, secured vs. unsecured debt, and open vs. closed-end accounts, writing a one-line definition and example for each

Compute the true cost of borrowing by hand for three scenarios (credit card carrying a balance, auto loan, personal installment loan) using APR, compounding frequency, and minimum-payment amortization

Explain how credit scores are constructed and which behaviors move them, then list five specific actions that raise a score within 12 months and five that damage it

Identify the main consumer credit protections and remedies available to borrowers (billing-error dispute, unauthorized-charge liability limits, debt-collection conduct rules, bankruptcy chapter distinctions) and state the practical trigger for each

Compare debt-reduction strategies by modeling a two-card, 8,000-dollar balance under minimum payments, snowball ordering, and highest-rate-first ordering, and quantify the difference in months and interest

Evaluate debt consolidation and balance-transfer options by calculating break-even points after fees and promotional-rate expiration

Diagnose warning signs of unsustainable debt and map them to concrete next steps, including when to contact a creditor directly versus a nonprofit counseling service

Draft the components of a personal debt payoff plan that names target balances, monthly allocation, and a review date

Compare mortgage structures (fixed-rate, adjustable-rate with caps, government-backed vs. conventional) and identify which borrower circumstances favor each

Calculate the full monthly housing cost for a sample purchase, including principal, interest, property taxes, homeowners insurance, and mortgage insurance where applicable

Distinguish the closing documents and cost categories a buyer should review, and explain the purpose of each major disclosure

Analyze an auto purchase decision by comparing financing, leasing, and paying cash, including depreciation, residual value, and total cost of ownership over five years

Identify the consumer protections and negotiation leverage points that apply to major purchases such as new and used vehicles and home improvements

Determine gross income, adjustments, deductions, and taxable income in the correct order and explain how each layer changes the marginal rate

Distinguish above-the-line adjustments from itemized deductions and the standard deduction, and decide which choice is rational for three sample taxpayer profiles

Compute tax liability for a sample filer by applying brackets progressively, then apply a credit and compare its effect with an equivalent deduction

Explain withholding, estimated payments, and the underpayment consequence, and calculate whether a sample filer is likely to owe or receive a refund

Identify which income types and life events (self-employment, investment income, education credits, retirement distributions) create the most common filing complications

Match each major insurance line (auto, homeowners or renters, health, disability, life, liability umbrella) to the specific risk it transfers and the losses it excludes

Explain the mechanics of deductibles, copayments, coinsurance, policy limits, and exclusions, and compute out-of-pocket cost under two different policy designs for the same claim

Distinguish term from permanent life insurance and determine an appropriate coverage amount using an income-replacement and obligations-based estimate

Compare health plan structures and identify the tradeoffs among premiums, networks, and cost sharing for a household with predictable medical expenses

Describe how to file a claim and what documentation and timelines drive a favorable outcome, including the appeal path for a denied claim

Classify investment vehicles (stocks, bonds, mutual funds, exchange-traded funds, money market instruments) by ownership claim, return source, and risk profile

Quantify the effect of compounding and fees by comparing two portfolios with identical returns but expense ratios differing by one percentage point over 20 years

Explain the relationship between risk tolerance, time horizon, and asset allocation, and construct three model allocations for short, medium, and long horizons

Distinguish the roles of diversification and correlation in reducing portfolio volatility, and identify a concentration risk in a sample portfolio

Identify the main investor protections and disclosure documents, including what a prospectus must reveal and how regulatory registration differs from an endorsement of quality

Compare retirement account types by contribution limits, tax treatment of contributions and withdrawals, employer matching, and withdrawal rules, and select appropriate accounts for two sample savers

Estimate a retirement savings target using an income-replacement approach and check progress with a compound-growth projection

Explain the distinction between wills, trusts, beneficiary designations, and powers of attorney, and identify which instrument controls which asset

Identify the consequences of dying without an estate plan and the probate-avoidance effect of beneficiary designations and payable-on-death arrangements

Describe the core estate documents an adult should have and the events that require revisiting them

Synthesize all six domains by working through integrated scenarios that cross domain boundaries, such as a home purchase that changes tax deductions, insurance needs, and retirement cash flow

Diagnose and correct personal weak areas by reviewing missed practice items and rewriting the underlying rule for each error

Rehearse time management by completing two full-length timed practice sets and recording pacing per domain

Consolidate the highest-yield formulas and definitions into a single review sheet organized by domain