Budgeting
How often should you budget?
Every Month
This is the financial gain calculated by subtracting total expenses from total revenue.
What is profit?
This is what you call it when you own a tiny piece of a company.
What is a stock?
What are the 4 major credit card companies?
Visa, discover, American Express, Mastercard
If Maria earns $50,000 annually and the income tax rate is 10%, how much does she pay in income tax?
What is $5,000?
Define budgeting?
Organize your finances and decide where your money should go
A company earns $1,200 in sales and has $800 in total expenses. Calculate the net profit.
What is $400?
It’s like planting money and watching it grow over time if you’re patient.
What is compound interest?
What can give you an immediate loan for the cash you don’t have?
Credit card
A shirt costs $30, and the sales tax rate is 7%. How much will the shirt cost after tax?
What is $32.10?
Income 400 a month
Electricity - 50
Gas- 70
Rent - 200
Chips - 20
Water bill - 50
Savings - 10
expenses 390
These types of costs stay the same regardless of how much a company produces.
What are fixed costs?
This place is like a giant mall for buying and selling stocks.
What is the stock market?
How do you handle when your debt is called?
A credit score
If John’s paycheck is $1,000 and the payroll tax rate is 6.2% for Social Security and 1.45% for Medicare, how much is deducted for these taxes?
What is $76.50?
Income 1100 a month
Rent - 500
video-games - 20
Food- 35
Waterbill - 50
house decor-200
Phone - 70
expenses - 925
savings - 175
This term describes the money left after variable costs are deducted but before fixed costs.
What is gross profit?
People say “don’t put all your eggs in one basket” this is the investing version of that.
What is diversification?
What type of loan is a credit card?
Short term loan
Emily owns a home valued at $200,000, and the property tax rate is 1.5%. How much does she pay annually in property taxes?
What is $3,000?
Income 2000 a month
What would you take off to save money?
Restaurants, music, clothes and coffee
A business spends more on advertising and sees higher sales. What must happen for profit to increase?
What is sales revenue must increase more than the advertising costs?
This type of account lets your money grow for retirement, and the government gives you tax breaks.
What is a Roth IRA?
If you’re a card holder, that only pays minimum balance every month what will they gain a lot of?
Interest
A person inherits $1 million, and the estate tax rate is 18%. How much must be paid in estate taxes?
What is $180,000?