Income and Employment
What is the goal amount of money to have saved up for an emergency fund?
$1,000
What does a minimum balance on a bank account mean?
You must stay above this amount in your account to avoid paying fees
What is the goal for taxes come April 15? What does this mean?
To break even, this means you paid the correct amount of taxes the previous year and you don't owe money or receive money
What is the difference between depreciation and appreciation?
Depreciation is when a value goes down over time, appreciation is when a value goes up over time
List 2 job search sites
What are the minimum and maximum credit scores on the scale? What is considered a good credit score?
300-850, a good credit score is above 690
This debt repayment method focuses on paying the highest interest rates first
Debt avalanche
What is gross income? What is net income?
Gross income is the amount you made before taxes are taken out. Net income is the amount you made after taxes are taken out (what you take home)
What are the 3 keys to successful budgeting?
Make a budget every month, track every expense, and budget to $0
This form is given to you by your employer in January and it includes how much you made over the whole year and how much you paid in taxes
The fee you pay for borrowing money is called
Interest
List 4 recommended paths after high school
College, trade, military, and work
What are the 4 walls?
Food, shelter, transportation, and utilities
This is the tax form you fill out when you start a new job that tells your employer how much to deduct from your paycheck
W-4
Spreading payments out over a set amount of time is called
Amortization
List the 7 baby steps in the correct order.
1. Save $1,000 in emergency fund
2. Pay off all debt (except house)
3. Build up 3-6 months of savings for monthly expenses
4. Invest 10-15% for retirement
5. Save for kid(s) college
6. Pay off your house
7. Build wealth & give
Explain the 50/20/30 budgeting rule.
50%- Expenses
20%- Savings/ Debt
30%- Wants
Explain these types of taxes: Federal, state, and FICA
Federal- taxes paid to the US government
State- taxes paid to the state government (IL)
FICA- taxes paid for social security and medicare
What is a grace period? How long is the grace period?
A 6 month period of time after graduating college before you have to start paying student loans back