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?
Coaching
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
How old is Pokorndawg?
27
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 is Pokorney's cat's name?
Slim (Shady) Pokorney
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.
Define simple interest.
Define compound interest.
Simple interest is the interest (A percentage fee) charged on borrowing that's calculated using an original principal amount only and an interest rate that never changes.
Compound interest is interest accumulated from a principal sum and previously accumulated interest.
What is an IRA?
What is the primary difference between a Traditional and a Roth IRA?
An IRA is an Individual Retirement Account.
The primary difference is that Traditional IRAs use pretax contributions which are tax deductible. Account growth is tax deferred and then distributions are taxed.
Roth IRAs use post-tax contributions and distributions are not taxed.
Why does your credit score matter?
Answers will vary.
1) What game is Esports currently competing in?
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) Rocket League
2) 2
3) 1997
4) 2016
5) Answers will vary.