Income
Money received, especially on a regular basis, for work or through investments.
Income
a plan that outlines an individual's financial goals and how they intend to achieve them over a specific period
Budget
What percentage of your gross income should be allocated for rent/mortgage?
28%
J.D. Power recommends that no more than of your take home, or net income, be allocated for transportation. (Car Payment, Insurance, Gas, Maintenance)
20%
is a practice or arrangement by which a company or government agency provides a guarantee of compensation for specified loss, damage, illness, or death in return for payment of a premium
Insurance
What is the term for your actual take-home pay after deductions or taxes are taken out?
What is Net Pay
The formula used for budgeting is:
Total Net Income - Expenses = Remaining Funds
Appreciation is when:
Value of a property goes up
True or False? Financing does not add to the total cost of the car?
False
is an amount to be paid for an insurance policy.
Premium
What should your monthly budget be based on?
Net Income
the amount by which something, especially a sum of money, is too small
________ is usually required when a borrower makes a down payment of less than 20% of the home's value
Private Mortgage Insurance
When you lease a car, you’re typically making a lower monthly payment than if you were to buy the same car, but you’re not gaining any in the vehicle that could later translate to trade-in or resale value.
Equity
Out of pocket expenses the insured pays before an insurance policy begins reimbursement
Deductible
FICA (Federal Insurance Contributions Act) contains two mandatory deductions, what are they?
Social Security and Medicare
What are the two types of Expenses?
Variable and Fixed
Which of the following are part of P.I.T.I.?
Principal, Interest, Taxes, Insurance
The term for owing my lender more money for the car, than what I can reasonably sell the car for is know as?
person or organization that receives benefit from an act or occurrence, and/or receives assets from a will, trust, or insurance policy.
Beneficiary
Complete the equation:
Gross Income - ______________ = Net Income
Deductions
Budget Surplus
an amount of something that is more than what is needed or required
difference between the amount you owe on a mortgage and what the home is worth
Home Equity
Daily Double: is the term to describe the value of a vehicle at the end of a lease.
Residual Value
What are the two primary types of Life insurance we discussed in class?
Term and Whole