What is the first step to creating a successful budget?
Note your net income
Student loans
Must be payed back and are almost never forgiven
What is a down payment and what does it entail?
It is a 20% deposit that needs to be put down on a home, the alternative is to get PMI (Private Mortgage Insurance).
What is it called when workers are paid twice per month with 24 pay periods per year?
Semi - monthly pay
What is one benefit of having a budget?
Reveals wasteful spending
Builds good financial habits
Controls spending
Grows spending
Reduces stress
When borrowing money, the main goal for obtaining an education should be to,
Improve your future by being able to obtaining a good paying job.
Rental Agreement.
What is the formula to find your gross pay?
regular wages or salary + overtime = gross pay
What is the largest expense in a budget?
Housing
State and community colleges are:
What is the lifespan of a Mortgage?
15 years to 30 years
What is the difference between an hourly wage and salary?
Hourly is paid based on hours worked, salary is a fixed amount a person gets.
An expense that does not change or changes a little from month to month?
Fixed expense
Borrowing money to obtain a certificate, skill, or degree?
Can be a good idea when properly evaluated as an investment.
What are the cost that you or the seller of your home have to agree on paying after everything is all said and done?
Closing cost.
Calculate the gross pay per month
Annual Salary: $28,541/ year
Answer:$2,378.42
What is the minimum amount you should put in savings?
5%
You must begin paying back a student loan?
At least 6 months after you graduate?
How do you know the price of the home you and your spouse can afford?
Your Salary+ Your spouses salary X 3
Calculate the gross pay per semi-monthly?
Annual Salary: $115,265/year
Answer: $4,802.71 semi monthly