Budgeting
What is a budget?
A budget is a financial plan that outlines the expected income and expenses over a specific period.
Explain the two primary ways a bank makes money.
1) Interest-bearing loans
2) Fees
What is a stock?
A stock, also known as a share or equity, represents ownership in a corporation or company. When you own stock in a company, you are a shareholder and have a claim on a portion of the company's assets and earnings.
Typically, how long is the term on a traditional mortgage?
30 Years.
What is the name of Pokorndawg's dog. What kind of dog is he?
Theo (AKA T, Theordorable, Mr.Goodboi)
Pug
What is the envelope system?
The envelope budgeting system is a traditional method of budgeting that involves allocating cash into different physical envelopes or virtual categories to track and control spending.
What are the two primary functions of a bank?
1) Safe place for deposits.
2) Provide loans to borrowers.
What is a bond?
A bond is a debt security that represents a loan made by an investor to a borrower, typically a government entity or a corporation.
What does IRS stand for?
Internal Revenue Service
What are three jobs Pokorndawg has done besides teaching?
Bartending (mix of service industry jobs)
Storm Chasing (roofing sales)
Corn Detasseling
Culvers
Aluminium can collecting.
What is the 50-30-20 Rule?
A budgeting rule of thumb. Allocates 50% of income to needs, 30% to wants, and 20% to savings and investing.
What is the difference between a traditional savings account and a CD?
1) Interest Rates
2) Withdrawal restrictions/penalties
What is diversification?
Diversification refers to the strategy of spreading investments across different asset classes, sectors, industries, or geographic regions to reduce risk and optimize returns.
What is the range for Credit Scores?
300-850
What colleges did Pokorndawg go to and in what order?
UW-Whitewater
UW-Madison
UW-Whitewater
What does Pay Yourself First Mean?
What is an ESA? What are they used for?
Educational Savings Account. Saving for education with tax benefits.
What is the relationship between risk and return?
Positively correlated.
What is a W2? What information is on it?
A W-2 form is an IRS tax form used in the United States to report an employee's annual wages, salaries, tips, and other compensation. It is issued by an employer to each of their employees and provides information necessary for the employee to complete their individual income tax return.
What state did Pokorndawg find success in while doing roof sales?
Colorado
Budgeting for a fixed income is different than budgeting for a variable income. Give an example of
1) A source of fixed income
2) A source of variable income
Judgement: Many answers will suffice.
Fixed: Salary, Pensions
Variable: Commissions, seasonal jobs, working for tips, investment income.
What does IRA stand for? Are IRA's employer sponsored?
Individual Retirement Account
What is a stock ticker symbol? What is the ticker for Apple?
A ticker symbol is a unique series of characters that represents a specific stock or security. Ticker symbols are typically designed to be easily recognizable and memorable.
AAPL.
Why does your credit score matter?
Answers will vary.
2) How many siblings does Pokorndawg have?
3) What year was he born?
4) What year did he graduate from Turner?
5) Opinion: What should Pokorndawg do next in life?
1) General Manager of Vintage Spirits and Grill
General Manager of Summer's Christmas Tree Farm Store
Runs a photography business
2) 2
3) 1997
4) 2016
5) Answers will vary.