Question | Answer |
Your goal in developing a ________plan is to be able to pay all of your expenses each month and put money into a savings or investment account and having a good spending plan in place will help you achieve this goal. | spending |
first section of a spending plan | income |
Do not ever provide information in an e-mail directly in the _____ of the e-mail or in an _______which contains your personal information. | body
attachment |
goal to achieve in less than 12 months | short term goal |
goal to achieve in more than 12 months but less than 5 years | intermediate goal |
goal to achieve in more than 5 years and up to 30 years | long term goal |
3 things to keep in mind when choosing a bank | convenience, service, cost |
one of the most widely recognized of the banking institutions because they have been so well known throughout the years. | commercial bank |
don't have a physical location | virtual bank |
when you use a debit card, the money is taken from your account | immediately |
top 2 features of online banking | convenience and security |
examples of income | interest paid to you
mowing lawns
paycheck |
examples of fixed expenses | mortgage
car payment
car insurance |
examples of variable expenses | groceries
gas
utilities |
examples of discretionary expenses | new iPad
movies
new TV |
2 basic forms of credit | credit card
installment loan |
percentage of interest you pay on an annual basis based on how much you have borrowed. | annual percentage rate |
you must pay at least the ____ payment to avoid additional fees on your credit card bill | minimum |
when you stop making payments on a loan | default a loan |
3 things that affect credit card costs | annual fee
finance charge
grace period |
credit scores range from | 500-810 |
the higher the number the | better the rating |
the better the rating the | lower the interest rate will be |
interest rate used by most banks, based on federal fund rate | prime rate |
how much is still owed on your account from the previous month | opening balance |
how much is owed on your account after your most recent payment and purchases | closing balance |
3 national credit bureaus | Equifax
Experian
Transunion |
how many times can you get a free copy of your credit score per year? | once |
2 components that make up credit history | consumer credit info
public record |
5 criteria to determine credit rating | payment history
how much you owe
length of credit history
new credit
types of credit |
used for various types of big purchases individuals make | personal loan |
actual amount of money borrowed | principal |
length of time the loan is set up for | term |
collateral makes a loan | secure |
an asset, usually what's being purchased, the bank owns rights to | collateral |
you can deposit into at any time | personal savings and money market |
you can only make a deposit when you open a | CD |
federally sponsored corporation which insures accounts in national banks and other qualified institutions up to 100,000 | FDIC |
FDIC stands for | federal deposit insurance corporation |
how much you make versus how much you're obligated for | debt to income ratio |
3 types of investment accounts | taxable
tax deferred
tax exempt |
3 areas to consider when choosing an investment | liquidity
risk
return |
3 major US stock markets | NASDAQ
Dow Jones
S&P 500 |
4 basic types of risk categories | low risk
high risk
moderate risk
limited risk |
provide a guaranteed return to the investor | low |
in companies who are well established and known for growth | limited |
in companies who have room for growth | moderate |
on speculative investments | high |
portion of a company's assets paid to stockholders | dividends |
when the company makes a profit then pays its investors | income stock |
a company experiences growth and its stock value increases | growth stocks |
hold their value better during downturns | defensive stock |
represent a loan which is being made to a corporation | bonds |
a term for how much return the fund has earned in the past | performance |
level of likelihood you may earn or lose what you invest | risk |
makes it more affordable to cover losses by sharing cost with a large group of people | insurance |
amount of money payed to an insurance company on a regular basis to pay for insurance | premium |
amount of loss suffered before insurance | deductible |
provides financial support in the event of a death | life insurance |
2 basic types of life insurance policies | term
cash value |
face value decreases every year | decreasing |
adjusted premiums every year | annual renewable |
when the policy never changes | level premium |
insurance designed for low income homes | medicaid |
pays a percentage of income when you're unable to work | disability insurance |
health plan for individuals over 65 | medicare |
specific losses not covered | exclusions |
most common form of insurance | exclusions |
the lower your credit score | the higher your premium will be |
tax returns must be filed before or on | April 15 |
receive income info on | w-2 form |
when you're hired as a contact labor you receive a | 1099 form |
most basic or short form | 1040EZ |
form most commonly used | 1040 |
if you make a mistake you can fix it on a | 1040X form |
IRS stands for | internal revenue service |
main reason taxes are collected | revenue |
most common federal tax | income tax |
a flat percent of an item you purchase | sales tax |
before you receive your first paycheck you must fill out a | w-4 form |
amount of money held from your check to cover income tax | federal withholding |
order of a 1040 form | gross income
adjustments
adjusted gross income
exemptions
deductions
taxable income
credits
taxes paid
refund/amount owed |