Investing
72/interest rate = # of years for the investment to double
What is the rule of 72?
What is insurance?
Fraud or misuse of personal information, accounts, or new accounts.
What is identity theft?
Single, Head of Household, Married Filing Joint and Married Filing Separately.
What are tax filing statuses?
An account linked to a debit card. The account holder has direct access to these funds. This type of account usually does not accrue interest.
What is a checking account?
Interest paid on the principal plus earned interest
What is compound interest?
The amount paid for insurance coverage. It may be paid monthly, quarterly or yearly.
What is a premium?
When a person makes a purchase without planning to make that purchase.
What is impulse buying?
This form is completed when a person begins a job. It tells the employer how much tax to withhold from their paycheck by claiming allowances.
What is the W-4 form?
Money borrowed and agreed to pay back with interest.
What is a loan?
A pre-tax retirement savings plan. The employer may match the employee's contribution amount.
What is a 401(k)?
The portion of losses that you agree to pay in the event of an accident. This portion must be paid before insurance coverage will kick in.
What is a deductible?
Goods that wear out or get used up. For instance, food, makeup, paper towels/toilet paper, etc
What are consumables?
1.45% federal payroll deduction
What is medicare?
When a person takes money out of an account.
What is a withdrawal?
Ownership or shares in a company.
What are stocks?
A person designated as the recipient of funds or other property under a will, trust, insurance policy or other financial arrangement.
What is a beneficiary?
A good that does not quickly wear out or get used up. For example, cars, books, houses, jewelry.
What is a durable good?
7.65%, payroll contributions by the employee and employer to fund Social Security (6.2%) and medicare (1.45%).
What is FICA, Federal Insurance Contributions Act?
A type of bank account which usually requires a minimum balance and accrues interest.
What is a savings account?
A certificate issued by the govt that promises to pay borrowed money to the lender at a fixed interest rate at a specific future date.
What is a bond?
A person who is appointed the legal responsibility to follow a person's will and carry out their financial responsibilities.
What is the executor?
A legal process through which people (or entities) who cannot repay their debts to creditors may seek relief from some or all of their debts.
What is bankruptcy?
The tax form that reports interest earned during the year.
What is the 1099-INT?
An account which earns interest based on the current interest rates in the market. The rates paid are generally higher than a savings or checking account. The minimum balance is significantly higher.
What is a money market account?