What is the difference between hourly and salary pay?
Salaried employees receive a fixed wage, but they must keep up with their responsibilities and complete necessary tasks—even if that means working extra hours. Hourly employees must be paid time and a half for any hours beyond 40 worked during a week.
Name four parts to a typical budget.
Transportation, Savings, Food, Insurance, Housing, Personal, and Utilities.
What does MSRP stand for?
The manufacturer's suggested retail price (MSRP) is the price that a product's manufacturer recommends it be sold for at point of sale.
Norris has a deductible of $1,000. He damages his car in an accident and it will cost $3,300 to repair. How much does Norris have to pay?
Norris will pay the deductible of $1,000.
This is the maximum insurance will pay for a claim.
The limit
[Name] The money you are paid before taxes: The money you get after deductions.
Gross Pay: Net Pay
What type of budget accounts for every single penny of your earnings? Allocating all of your net pay to a specific bucket.
Zero budgeting.
How are direct lending and dealer financing similar?
Like a direct loan, you'll have to pay the principal and interest with dealer financing.
Describe the correlation between drivers age and cost of auto insurance.
The younger you are the higher your insurance, while the older you are the lower your insurance.
What does FICA consist of?
Social Security & Medicare
What are the four types of payment schedules?
What buckets are represented and percent allocated to each in the 50/30/20 rule of budgeting?
50% Needs - 30% Wants - 20% Savings
What does the true cost to own (TCO) calculate?
Depreciation, interest on your loan, taxes and fees, insurance premiums, fuel costs, maintenance, and repairs.
Each month you pay a ______ on your insurance.
Premium
What are the top three expenses the government pays for with our tax dollars?
Health, Government, and Unemployment & Labor
Devin makes $61,992 per year and pays about 25% of his gross monthly income in federal and state taxes. What is his net pay?
Devin makes $3,874.5 a month.
(61,992/12)*.75=$3,874.5
One speeding ticket can raise your auto insurance rate by nearly x%, and one DUI can ___.
One speeding ticket can raise your auto insurance rate by nearly 30%, and one DUI can at least double your rate.
Kaitlynn's monthly gross income is $2,765. She pays 34% of her monthly gross earnings in federal and state taxes and $535 to her student loan. Kaitlynn uses 5% of her monthly gross income to pay toward her credit card balance. She wants to rent an apartment that will cost $1,000 per month. Will she be able to make the payments without changing the amounts she pays toward her bills?
Yes, she will be able to afford the apartment, but just barely.
0.39*2765=1078.35+535=1613.35 Bills
2765-1613.35= 1151.65 Money left
What are the five types of auto insurance?
Liability, Collision, Comprehensive, Personal Injury Protection, and Uninsured/ Underinsured.