Jobs and Income
How often would you get a paycheck if you were paid biweekly?
Every 2 weeks
Who pays taxes?
Everyone
What is insurance?
A contract to pay someone regularly, so that they will pay out if and when something goes wrong
What makes a savings account different from a checking account?
A savings account collects interest
What does it mean to invest?
To put your money in to make more money
What is an aptitude?
Something you are naturally good at
What are the 4 types of income tax? (The taxes taken out of your paycheck)
Federal Withholdings
State Withholdings
Social Security
Medicare
True or False: You don't need car insurance to drive a car
False: All cars are required to be insured to be on the road
What is interest?
A fee received or paid for the use of money
What do you call a piece of ownership of a company you can buy and sell?
Stocks
What will be higher, your Gross Annual Income (GAI) or your Net Annual Income (NAI)?
Gross Annual Income
What do you call a tax on goods purchased?
Sales Tax
Where do most Americans get their health insurance?
From their job
Name 3 services a bank provides
Saving your money, loans, mortgages, credit cards, atms, checks, wire transfers
What is a Bond?
An IOU you can buy from the government, where they will pay you more back
If you are paid weekly, how many times will you be paid in a year?
52 times
Name at least 3 things taxes are used for
Military, Public School, Roads, Social Security/Medical, Police, Firefighters, Health Care, Social Programs
Name 3 different types of insurance
What is a Mortgage?
A special type of loan using your house as collateral
or
The bank buys your house for you, and you are paying them back over time
What do you call a savings account with a high interest rate, that you can't touch for several years
A Certificate of Deposit (CD)
or
A Trust Fund
Wage is a variable amount, you are paid based on hours worked
Salary is a fixed amount, you are paid a guaranteed amount every year
Is income tax a progressive or regressive tax?
Progressive, because the more money you make the more you are taxed
What is the name of the government program trying to provide health insurance to people who can't afford it?
The Affordable Care Act (The ACT)
What is the difference between Simple and Compound Interest?
Simple Interest - Only includes the original amount of money
Compound Interest - Includes all the money that's been added from interest
Why might you invest in a newer company, like Tesla, over a well established and stable company, like Toyota
Tesla stocks will be cheaper
Tesla is more likely to grow more significantly while you have them