Taxes
Tax exemptions
A part of income on which no tax is imposed
Traditional Savings Account
A savings account that you put money in to save, not meant for spending.
What is a contract?
A legally enforcable promise between two parties (verbal or written)
Subsidized loans
Need-based loans where the government pays interest on it while in school (during 6 month grace period)
PITI
Tax deductions
Expenses that are deducted before determining taxable income (reduces % tax)
Online Savings Account
Just like a traditional savings account, however it's operated online.
The 3 components of a contract
Offer, Acceptance, Consideration
Unsubsidized loans
Loans that you pay interest on (3%-8%), they're easier to get than subsidized loans.
FICA
Federal Insurance Contribution Act
Tax credits
Amounts that can be deducted from the taxes owed (reduces $ tax)
APY
Annual Percentage Yield
What happens if you don't hold up your end of the contract?
You can be taken to court
Financial obligation
All loans must be paid back at some point.
FAFSA
Free Application for Federal Student Aid
Proportional Tax
A tax that takes the same % of $ from all income groups
CD
An exchange from the bank to to the customer, where a certain amount of money that the customer deposits is stuck and gains a certain amount of interest over time.
Statute of Frauds
Any agreement that can't be done in a year, sales of goods for $500+, real estate sales, and a promise to pay off the debt of another person
Direct Plus loans
Also known as "parent plus" loans, they're given to the parent during undergrad, or to the student during post-grad.
EFC
Estimated Family Contribution
Progressive Tax
A tax where a higher income group is taxed heavier than a lower income group
MMA
A bank account meant for saving and checking. Money can be put into the account, and the bank will pay interest in it periodically.
Can all contracts be verbal?
No
Consolidation loans
A type of loan that combines all loans into one, then you pay the average interest rate.
COA
Cost of Attendance