Flight BA: Banking & Accounts
What is the First step in the Financial Planning Process.
What are define financial goals?
A personal budget should account for these two items.
What is income (revenue) and expenditure (expenses)?
Required payments of money to governments, which use the funds to provide public goods and services for the benefit of the community as a whole.
What are taxes?
A contractual agreement in which a borrower receives something of value immediately and agrees to pay for it later
What is credit?
A United States federal tax form issued by employers stating how much an employee was paid in a year. It is submitted to the IRS along with your tax return.
What is a W-2?
A privately-owned institutions that, generally, accept deposits and make loans.
What is a bank?
This is the income received prior to taxes and deductions.
What is gross pay?
A tax on wages or salary (amount earned) paid to both state (in WV) and federal governments.
What is income tax?
The charge for the privilege of borrowing money is typically expressed as a percentage rate.
What is interest?
Currently, it amounts to $7.25/hr, though efforts are being made by the Administrations to raise it to approximately $10/hr.
What is the (federal) minimum wage?
These two types of accounts, maintained by commercial banks and credit unions, may or may not have associated fees, pay interest, or require minimum balances. Deposits and withdrawals are made directly from such accounts, often via bank tellers and ATMs.
What are checking and savings accounts?
This is income after taxes and deductions.
What is net pay?
This tax applies the same tax rate across low-, middle- and high-income taxpayers.
What is a flat (or proportional) tax?
A prediction of your credit behavior, such as how likely you are to pay a loan back on time, based on information from your credit reports.
What is a credit score?
This tax withholding form is completed at the time of employment so that your employer can withhold the correct federal income tax from your pay. Tax deductions or allowances are made for children and other dependents.
What is a W-4?
This is maintained, either electronically or by hand, to account for deposits, withdrawals, and other line items. It is sent out at the end of each month.
What is a bank statement (or register)?
These types of expenses remain unchanged from period to period. Examples include mortgage or rent, insurance, and, often, utilities.
What are fixed expenses?
A tax that takes a larger percentage from high-income earners' income than low-income individuals. In the U.S., federal income tax rates range from 10% to 35%.
What is a progressive tax?
A record (accompanied by a rating) of a consumer's ability to repay debts and demonstrated responsibility in repaying debts.
What is credit history (or credit report)?
The interest rate that you use to compare different loans with different characteristics.
What is the annual percentage rate (APR)?
A non-profit membership organization that offers checking accounts, savings accounts, and loans.
What is a credit union?
These types of expenses fluctuate or change from period to period. Examples include personal entertainment or travel costs, and other discretionary items.
What are variable expenses?
The Federal Income Contributions Act (FICA) requires that you pay these two "payroll taxes" (for retirement and healthcare)
What are Social Security and Medicare taxes?
Something pledged as security for repayment of a loan (e.g. a house or car), is to be forfeited in the event of a default.
What is collateral?
This insurance covers all deposit accounts, including checking and savings accounts, money market deposit accounts, and certificates of deposit. The standard insurance amount is $250,000 per depositor, per insured bank, for each account ownership category.
What is FDIC (Federal Deposit Insurance Corporation) insurance?