Banking
Interest calculated on both the initial amount and previously earned interest
Is the total amount of money earned before anything is taken out
What is gross income
Is the smallest amount you must pay on your credit card each month.
What is minimum payment
Is the original amount of money borrowed
What is principal
What is the main reason people purchase health insurance
What is to reduce financial risk from healthcare costs
The original amount of money borrowed or invested
What is principal
Shows how much money you earned and how much tax you paid during the year.
What is a W-2 Form
Allows you to borrow up to a limit and pay it back over time (like a credit card).
What is revolving credit
This type of loan requires collateral
What is a secured loan
The monthly cost paid to keep an insurance policy active
What is a premium
The yearly cost of borrowing money
What is APR
What is the purpose of a W-4 form
What is it determines how much tax is withheld from paychecks
Is a number that represents your creditworthiness.
What is credit score
Used to buy a home
What is a mortgage
After meeting a deductible, what cost may still be shared between the insurer and insured
What is coinsurance
Something valuable used to secure a loan
What is collateral
The money your employer removes from your paycheck for taxes.
What is withholding
Is a loan with fixed payments over a set period of time.
What is installment credit
Is a person or institution that gives you money
What is a lender
Which plan typically has lower premiums but higher out-of-pocket costs
What is a HDHP
Explain how compound interest can be both helpful and harmful depending on the situation
Compound interest is helpful when saving money because your money earns interest on previous interest. It is harmful when borrowing money because debt grows faster if unpaid balances gain interest
What is taxes (federal, state, local), social security, medicare, health insurance, and retirement contributions
Name two factors that can improve your credit score
What is paying bills on time, keeping credit utilization low, having a long credit history, using a mix of credit types
Provide an example of an unsecured loan
What is a credit card or personal loan
Which government program provides coverage for low-income individuals
What is medicaid