Banking
TRUE OR FALSE:
Checking accounts act as a good savings vehicle
False
FILL IN:
A loan with a shorter term length will have _____ monthly payments, and you will pay _____ in total interest.
Word bank: lower, higher, more, less
Higher, Less
JEOPARDY:
A child or adult that you support financially
What is a dependent?
QUESTION:
You have a summer job and are paid $3,000. After Federal and state taxes, Social Security, and Medicare are deducted, your take-home pay is $2,500.
What is your Net and Gross pay?
$3,000 Gross
$2,500 Net
QUESTION:
Why is it important to fill out grant/scholarship applications early?
So that funds are available
TRUE OR FALSE:
Savings accounts have higher interest rates on deposits than checking accounts
True
QUESTION:
Why is it often a good idea to pay more than the monthly amount due on an amortized loan?
The extra payment will be applied to the principal amount you owe, which will pay down your debt more quickly.
JEOPARDY:
When you complete your 1040 form, if you overpaid your taxes and the government owes you money
What is a refund?
QUESTION:
what is the 50/30/20 rule?
A breakdown of your take home pay allocation: 50% needs, 20% on saving, and 30% on wants
JEOPARDY
These student loans generally provide more flexible repayment options
What are Federal Student Loans?
SCENARIO:
You have signed up for overdraft coverage on your checking account. You have $10 in your account and you spend $12 on lunch, $12 on a movie ticket, and $15 for dinner. What is likely to be the outcome resulting from these transactions?
You will likely be charged and overdraft fee for one or more of the transactions, and will need to repay the bank for the amount overdrawn.
FILL IN:
When loans are amortized, monthly payments are ________, while the amount of your monthly payment to interest ________ and the amount of your monthly payment applied to the principal _______ over time.
Word bank: decreases, increases, constant, variable
Constant, Decreases, Increases
SCENARIO:
You have a part time job that pays $12/hour and you work about 50 hours every month. Your withholdings are Social Security (6.2%), Medicare (1.45%), and federal income tax (10%). What is your approximate NET pay?
$500
MULTIPLE CHOICE:
Which of these boxes of cereal has the LOWEST unit price?
Cereal A, which costs $3.20 for a 16 oz. box
Cereal B, which costs $5.00 for a 32 oz. box
Cereal C, which costs $2.50 for a 10 oz. box
Cereal D, which costs $4.50 for an 8 oz box
Cereal B; 16 cents/oz
JEOPARDY:
A federal student loan where interest accrues from the date of disbursement, and you are responsible for paying it throughout school, grace periods, and deferment.
What is a Direct Unsubsidized student loan?
JEOPARDY:
Protection for bank customers' deposits up to 250,000, guaranteeing their money is still available if the bank goes out of busuness.
What is FDIC insurance?
QUESTION:
A type of loan where if the borrower does not make payments, the lender can repossess the item
What is a secured loan?
QUESTION:
If a taxpayer fills out their W4 in a way that does not withhold enough money to cover their tax obligation, what is the most likely outcome after they file their taxes?
They will owe a payment to the IRS
QUESTION:
A good rule of thumb when budgeting for a home is to expect to make a _______% down payment.
20%
QUESTION:
Who sets the interest rates for federal student loans?
Congress
FILL IN:
Historically, savings accounts earn _________________ (higher/lower) returns than investments in the stock market
higher
MULTIPLE CHOICE:
Which of the following is most likely to represent a fixed rate, secured debt?
Student loan, Credit card, Prepaid debit card, Auto loan
Auto loan
MULTIPLE CHOICE:
You just accepted a new job and are working with the company's HR department to fill out paperwork. What form will you need to fill out that will determine how much money is withheld from your paycheck for taxes?
Bank: W2, W4, 1040, I9, 1099
W4
QUESTION:
You earn a salary of $40,000 per year and decide to save 20% of your gross pay. You set a goal of creating a $16,000 emergency fund. How long will it take you to achieve your goal?
2 years
20% of 40,000 is 8,000
JEOPARDY:
A federal student loan where the U.S. Department of Education pays the interest while you are in school at least half-time, during the 6-month grace period, and during deferment.
What is a Direct Subsidized student loan?