Budgeting/Saving
What is the higher interest rate:
The rate banks offer customers to keep their money in a savings account, or the rate banks charge borrowers when lending them money?
The rate banks charge borrowers when lending them money
TRUE or FALSE:
Having a high credit score means you have a lot of money.
FALSE
A person who can go on vacation for two weeks and still have his/her company operate without any issues is an example of someone who is an EMPLOYEE, SELF-EMPLOYED, BUSINESS OWNER?
BUSINESS OWNER
Name the two different types of investing that we discussed in class
1) Stocks
2) Real Estate
TRUE or FALSE: It's possible to become wealthy without earning a high income.
TRUE
How many of the items below can be classified as "wants"?
iPhone, Food, Tesla, Fiji Water, Housing, MacBook, Transportation, Clothes, Ugg Boots
5 - iPhone, Tesla, Fiji Water, MacBook, Ugg Boots
Which of the following is an example of "bad debt":
1) Borrowing money to pay for your education
2) Borrowing money to purchase a house
3) Borrowing money to purchase a new car
3) Borrowing money to purchase a new car
The amount of money on your paycheck after taxes have been deducted is called, GROSS PAY or NET PAY?
NET PAY
Why does Mr. Polykoff recommend that you invest in Index Funds over Mutual Funds?
The Money Managers who manage your mutual funds charge too much in fees
According to Mr. Polykoff, what is the first thing you must do in your path to becoming wealthy?
Commit to a mindset and a lifestyle that will allow you to become wealthy
Which statement is FALSE:
1) You can earn interest on the money in your savings account, but not your checking account
2) Checks and debit cards take money directly from your savings account
3) Most banks are FDIC insured, which protects you from losing your money up to a certain amount
2) Checks and debit cards take money directly from your savings account
Name at least three of the four most common forms of debt.
Student loan, car loan, mortgage and credit card
In class we discussed the Cashflow Quadrant, which was four ways to earn income. Name at least three of those four ways.
Employee, Self-Employed, Business Owner, Investor
Owning and living in a house, while also renting out the other bedrooms is called what?
House Hacking
"To trade by exchanging one commodity for another. To trade goods or services in exchange for other goods or services" is the definition of what?
Barter
According to the 50:30:20 Rule, 50% of your income should go to essential items, 30% should go to "wants" and lifestyle choices, what should you do with the other 20%?
Save and/or Invest
Names two advantages to using a credit card that we discussed in class.
1) Build credit
2) Pay later (grace period)
3) Reward points
Name two types of taxes that are taken out of an employees pay check
1) Federal income tax
2) State income tax
3) Social Security tax
4) Medicare tax
We learned about two types of stock markets, the NASDAQ and the what?
New York Stock Exchange
What are three things you can do to help you afford college tuition without relying on your parents/guardians for help?
1) Apply for external scholarships
2) Get a job while in HS
3) Earn scholarships through the school (academic, athletic, etc.)
4) Apply for financial aid via FAFSA
5) Go to a less expensive college (college in state, community college, etc.)
If banks pay you (provide interest) for keeping money in their savings accounts, how do they make money?
The interest rate they provide you is less than the interest rate they charge people who borrow money from them (e.g. Savings account = 1% interest, Borrowing money = 5% interest)
What is the highest number you can get on your credit score?
850
Name two types of retirement investment accounts.
401k, 403b, IRA, Roth IRA
Name three ways you profit from rental properties
1) Cash Flow
2) Mortgage Pay Down
3) Appreciation
4) Tax Benefits
Name at least five of Mr. Polykoff's "Seven Phases to Wealth"
1) Commitment to a mindset and a lifestyle that will allow you to become wealthy.
2) Make money. Earn an income.
3) Create a budget and live below your means.
4) Get out of and/or stay out of debt.
5) Before paying your expenses, pay yourself.
6) Save money for an emergency fund.
7) Invest all of your excess savings.