Budgets
A personal budget should account for these 2 line items.
What is income (revenue) and expenditure (expenses)?
2 types of accounts may or may not have associated fees, pay interest, or require minimum balances. Deposits and withdrawals are made directly (bank tellers, ATMs, etc). Usually maintained by a commercial bank or credit union.
What are checking and savings accounts?
A tax on wages paid to both the state and the federal government:
What is income tax?
The charge you incur in consequence of borrowing money. Usually a percentage.
What is interest?
This is your teacher's favorite color.
What is blue?
This is the income received prior to taxes and dedudctions.
Low-risk investments generally yield a low rate of return. What is the corresponding and opposite rule to this statement?
What is the greater the risk, the greater the reward (but the greater the chance of loss)?
This tax applies the same tax rate to all classes of taxpayers (low, middle, high).
What is a flat tax? (or proportional)
This interest rate must be divulged by lenders so that you may easily compare rates. (factors in borrowing fees)
What is APR? (annual percentage rate)
This is your teacher's favorite sport?
This is income after taxes and deductions.
What is net pay?
The term that denotes the amount borrowed or the amount still owed on a loan OR the original amount invested.
What is principal?
A tax that affects high-income earners more than low-income. Generally 10% to 35%.
What is progressive tax?
A record of a consumer's ability to repay debts and demonstrated responsibility in repaying debts. (Number score/rating)
What is credit history? (or credit report)
This is what your teacher has a degree in.
What is accounting?
These types of expenses remain unchanged from period to period. (mortgage/rent, insurance, utilities)
What are fixed expenses?
Interest calculated on the initial amount deposited or loaned and also on the accumulated interest of previous periods of a deposit or loan. (Interest on interest)
A tax that takes a larger percentage from lower income people than high-income earners. Generally applied uniformly.
What is regressive tax?
Something put up as a security for repayment of a loan, will be taken in event of a default. (usually a large asset- house or car)
What is collateral?
These are your teacher's 2 favorite college football teams.
What are the Huskers and the Clemson Tigers?
These types of expenses fluctuate or change from period to period. (entertainment, travel, etc)
What are variable expenses?
This "rule" is a simple way to calculate the amount of time it will take to double the value of an investment at a specified rate of return.
What is the "Rule of 72"?
FICA requires that you pay these two payroll taxes. (retirement & healthcare)
What are Social Security and Medicare taxes?
This is the percentage that determines how much extra money you owe on your loan.
What is interest rate?
Who is Palmer?