Vocabulary
What is interest?
Interest is the fee to borrow money.
What’s one important thing to consider when choosing a bank?
Whether there are monthly fees or minimum balance requirements.
What is the federal income tax designed to do?
To ensure that taxpayers with higher taxable incomes pay a larger percentage rate than do taxpayers with lower taxable incomes.
What is the key benefit of Roth retirement accounts?
The withdrawals are tax free.
When do people face opportunity costs?
when deciding between saving and spending their money because a person cannot spend and save the same dollar.
What is a payday loan?
A payday loan is called a “payday” loan because it comes due on the borrower’s next payday.
What do you want to make sure that any bank account is a member of?
The Federal Deposit Insurance Corporation (FDIC)
Payroll Tax:
Excise Tax:
Property Tax:
Sales Tax:
Payroll Tax: Amount taken out of paycheck
Excise Tax: Amount of money owed to the state for owning and operating a motor vehicle
Property Tax: Amount of money owed for owning property
Sales Tax: Amount of money owed when purchasing products
\What is the best advice for making the most of retirement savings accounts?
Starting early and avoiding early withdrawals from retirement accounts.
Why do people often resort to instant gratification?
because more weight is placed on current wants than future needs.
What is inflation?
The average price of goods and services you buy increases over time
What is a W4 used for?
The W4 form is used by employers to determine how much taxes to withhold from their employees.
If you pay too much in income taxes in a year, you expect a refund when you file your taxes
If you paid more through the year than you owe in tax, you may get money back.
What happens when people don't pay their credit card balance in full?
they must pay the interest on the balance.
What is unemployment rate?
the number of percent of the total labor force
What is the W2 used for?
Employers provide the W2 form to notify their employees how much they paid in taxes for the year.
What happens if you miss the State or Federal government's priority deadline for submitting the FAFSA?
you do not miss out on getting a student loan, grants, and scholarships
If you have several credit cards, why it is suggested to pay off the credit card with the smallest balance first?
It saves money in interest and it gives you a feeling of victory to continue paying off other debts
What is The Bureau of Labor Statistics?
a US agency that provides key employment data, including the unemployment rate
Why do students fill out the FASFA?
Students fill out the FAFSA so the federal and state government can determine how much loan and grant funding you are eligible to receive.
What is One way to prevent identity theft?
One effective way to prevent the theft is to monitor your credit report.
What is a deductible?
A deductible is the amount of money you agree to pay out of pocket before your insurance company starts covering costs.