Taxes
Name three types of taxes that everyone has to pay
Income tax, sales tax, property tax
Explain the idea of compounded interest?
When you keep investing, you money grows exponentially
What is the indicator that tracks the 500 biggest stocks?
S&P 500
What is the Massachusetts minimum wage?
$15/hour
What is the difference between a subsidized and unsubsidized student loan?
Subsidized is for people who need it, anyone can get an unsubsidized loan
What is the difference between Medicare and Medicaid?
Medicare - Elderly people
Medicaid - People who earn below a given threshold
Name two types of long term savings plans?
IRA or 401k
Are bonds a safe or risky investment?
Safe!
What are the advantages of being paid in cash?
No hidden fees, so you earn more each paycheck
What is the difference between a want and a need?
A need is something vital to live (this question was a layup)
Who pays the most in income taxes?
The people who make the most money
What is a pension?
Another form of a retirement fund
Name 5 companies that you could buy stock in
-
What is an advantage of direct deposit?
Quicker
What is life insurance?
Money that is given to your family when you die
What is the difference between federal and state taxes?
Why is it important to save most of the money you earn?
Because it creates compounded interest
Explain a common misconception about real estate investing
Real estate prices always go up, you will always make money
What is gross/net pay?
gross is before taxes, net is after tax
What is the match rate for Work Force students match savings account?
100%
Everyone pays the same!
What are some other ways you can save money outside putting money in a savings account?
Stock market, retirement funds, other forms of investment
What is the riskiest type of investment?
Cryptocurrency
What are voluntary deductions?
Amount of a paycheck that someone has decided to contribute to benefits (retirement/healthcare)
What is a mortgage?
A mortgage is a loan to pay for a house