Savings
How much should you start an emergency fund with?
$500
TRUE or FALSE: Variable is changes in price and aren't expected month to month
FALSE: They are expected month to month
What is interest?
A rate that your financial institution charges you for lending you the money
What is consumption tax?
Extra money consumers have to pay on the things we buy
What are the 4 walls that you should cover?
Food, Utilities, Shelter, Transportation
Compound Interest is
Interest on interest
Intermittent Expense is
Expenses that occur at various times throughout the year; tends to be large, lump sums
One difference between secured & unsecured credit
Secured
Collateral
Lower interest rate
Less risky to lender
Unsecured
NO Collateral
Higher interest rate
More risky to lender
What are income taxes based on?
Based on W-4 form & tax rates
How much should down payment be?
10-20%
Inflation is
Rising prices of goods & services
Discretionary Expense is
expenses of “want” items
Credit Score Range
300-850
What is a W-2 Form?
A form that shows how much you made during the year
What is a lease?
A contract in which one party gives property to another party for a specified period of time, usually in return periodic payment
Name a reason to save
Build your EMERGENCY FUND
LARGE PURCHASES
WEALTH BUILDING
First step to budgeting
Track income/expenses
Name All 5 C's of Credit
Character, capacity, capital, collateral & conditions
Name the 2 Largest Tax Companies
H&R Block, PwC
Rent should be no more than ____ of your net pay
25%-30%
Formula for Time Value of Money
How many Americans actually budget?
35%
How long does chapter 13 bankruptcy last?
3-5 years
What is wealth tax?
A tax on the wealth (assets) possessed by people who live in a certain country
The third step in the home-buying process is...
Make Offer/Home Inspection