Investing
This is a loan you give to an organization.
What is a bond?
The minimum monthly payment on this type of loan varies month to month based on your purchases.
What is a credit card?
This is an investment option that allows you to own a small piece of a company
What is a stock?
If your employer does not offer a 401k account you can open this investment account for retirement.
What is an IRA?
This is the form that you are required to submit on 4/15 each year.
What is the 1040.
What is one question an investor should ask when deciding whether or not they would like to open a Roth IRA or a Traditional IRA?
Do I want to pay taxes now or later?
In this type of loan, the payments stay the same, but the principal is paid down more quickly.
What is amortization?
This makes a stock more accessible to a greater number of investors.
What is a stock split?
This is the name of the amount of money you take home with each pay check.
What is your net pay?
This is taken out of your paycheck and called FICA tax, it refers to the combination of what taxes?
What is Social Security and Medicare
These funds match the returns of the index they are following.
What are index funds?
Sophia’s mom recommends that she spends a year building and establishing this before she applies for a loan to buy her dream car, which costs $54,000.
What is a good credit score?
This is a standardized way of presenting the key terms of your credit card agreement.
What is a Schumer Box?
A popular rule of thumb when renting an apartment is to spend no more than this percent of your gross salary on housing.
What is 30%?
Contributions taken out of your paycheck BEFORE taxes are calculated on your income
What are pretax deductions and contributions?
I am best for beginner investors who want to build their retirement fund. I don't require a lot of work as an investor and am often referred to as a set-it-and-forget-it fund.
What is a TDF?
Alexa is buying her first house and needs lower payments for a few years until she’s done paying off her student loans. She thinks she could then afford far greater payments in a few years. This is the type of mortgage she should apply for.
What is an ARM?
The average American family spends most of their money on this category of expenses.
What is housing?
Unexpected expenses will always pop up in life. You have a dog and he got an infection. You do not have health insurance and have not budgeted this bill in your monthly budget. This is the name of the fund you will use to pay the bill.
What is an emergency fund?
This is the dollar amount of earned income that requires an individual to file a tax return.
You must file a return if your earned income was more than the standard deduction $13,850 for 2023.
When reading a stock quote, the following metrics would give you the best idea of the total value of the company?
What is its market cap?
You found your dream house, but you can't afford to put 20% down. You can afford the mortgage by putting less down for the down payment. You will need to get this before getting approved for a mortgage.
What is PMI?
The moment you drive a car off the lot, it value can depreciate by this percent.
What is 10%? Cars lose 10% of their value the moment you drive it off the lot
It is not in our budget to buy a new car so you start shopping for used cars. This is the type of used car that comes with a manufacturer's warranty.
What is a Certified pre-owned car?
Certified pre-owned cars come with manufacturer warranties while pre-owned cars may not
These are two examples of Employer Contributions.
Health insurance and 401(k)