Taxes
A tax on wages or salary (amount earned) paid to the federal government calculated as a percentage of what you earn.
What is income tax?
This helps you achieve long-term spending goals, limit/expose bad spending habits and save for retirement.
What is a monthly budget?
This employer sponsored retirement investment gives employees a tax break on money they contribute by automatically withdrawing from paychecks and invested in funds of the employee's choosing.
What is a 401K?
What is a 1040 form?
Tax that is used to fund mandatory spending items in the federal budget like medicare and social security
What are payroll taxes?
This determines the maximum amount a borrower is able to borrow
What is credit limit?
Kate has the option of going to a basketball game, seeing a movie, or going to a concert. She really wants to go to the concert but ends up deciding to be a supportive sister and go to her brother's basketball game. What is Kate's opportunity cost?
What is going to the concert?
Add this word in front of accounts like IRA & 401K and account holders will have to pay taxes on contributions but get a break on withdrawals.
What is Roth?
Number between 300-850 that indicates a lender's willingness to issue you a loan
What is credit score/rating?
A tax that takes a larger percentage from the income of high-income earners than it does from low-income individuals. In the U.S., federal income tax rates range from 10% to 35%.
What is a progressive tax?
These types of loans come with a simple interest payment that can be paid over a long period of time?
What is a Mortgage?
This retirement investment is offered for educators or government employees.
What is 403b and 457b?
Interest calculated on the initial amount deposited or loaned and also on the accumulated interest of previous periods of a deposit or loan. It can be thought of as “interest on interest,” and will make a deposit or loan grow at a faster rate than simple interest.
What is compound(ed) interest?
This tax form is only for independent contractors and is used to provide the correct Taxpayer Identification Number (TIN) to the person who is required to file an information return with the IRS
What is a w-9?
These two terms describe the likeliness to lose money on an investment and how easily an investment can be cashed in.
What is risk and liquidity?
Better hope that when you buy a car you receive this type of interest.
What is Simple interest?
The name given to investors of one of the riskiest investments.
What are shareholders?
Reducing your taxable income is considered a _________ while a __________takes money off of the total tax bill.
What is a deduction Deduction/Credit
Double the number on this tax form to get the name of a different tax form used to communicate to an employer the amount you want withheld from your paycheck every month.
What is a W-2?
These three words that start with a C are key factors a lender uses for evaluating the risk of a loan
What are character, capacity, and collateral?
Josh has $20 and is trying to buy sandwiches ($5) and chips ($2). What is josh's budget constraint?
What is 4 sandwiches & 0 chips OR 10 chips & 0 sandwiches?
this is an investment option that pools money from many investors and invests the money in securities such as stocks, bonds, and short-term debt
What is a mutual fund?
When you are a _________ you should look for opportunities with simple interest. When you are a __________ you should look for opportunities for compound interest.
What is a Borrower/Lender?