Banking Basics
Fees that could be on a basic savings or checking account
Overdraft
Monthly maintenance
ATM
Plan for dividing your income between spending and saving options
Budget
Types of expenses such as rent and college loan payments
Fixed Expense
Stock
These are personal beliefs that drive decision making and differ from person to person
Values/Morals/Personality
Considered the most liquid asset
Cash
Difference between Gross and Net pay on your paychecks
Gross Pay - ______ = Net Pay
Payroll deductions (taxes, health insurance etc.)
This amount of dollars is left over when your gross income of $1,000 has a total of $250 in deductions
$750
The amount earned on an investment, such as interest
Return
Typical number of weeks worked for a paycheck
2 Weeks
Federal agency insures bank deposits up to $250k
Federal Deposit Insurance Corporation (FDIC)
Factors that closely influence your future income-earning potential
Education and training
Setting aside this each month will help with future needs or emergencies
Savings
The earlier you start investing, _____
the more time your money has to grow
Your score in this area may affect getting a job, renting an apartment or car insurance rates
Credit Score
This type of savings account has a penalty for early withdrawal of your money
Certificate of Deposit (CD)
Amount of months needed to evaluate your purchasing patterns
3 months
This many months of expenses should ideally be in your emergency fund
3-6 months
Uninvested cash loses due to inflation
Purchasing power
This type of financial institution is only for members of a specific group, like a school district
Credit Union
The amount of time a bank takes to verify sufficient funds to transfer money
holding period
This form determines the amount of tax withholdings on each of your paychecks
W-4
Your take home pay after deductions
Net Income
The amount of money a policyholder must pay BEFORE the insurance company will pay a claim is called a
Deductible
This comprehensive document outlines your income, assets, liabilities, and future financial goals, serving as a roadmap for your financial life.
Financial Plan