Insurance
type of insurance that protects you from lawsuits, usually against your customers or people using property that you own.
liability insurance
A personal budget should account for these two line items.
income (revenue) and expenditures (expenses)
This interest rate, which factors in borrowing fees, must be divulged by lenders so that you may more easily compare rates.
annual percentage rate (APR)
A tax on wages or salary (amount earned) paid to both state and federal governments.
income tax
to take money out of an account.
withdrawal
The cost of an insurance policy monthly
premium
These types of expenses remain unchanged from period to period. Examples include mortgage or rent, insurance, and, often, utilities.
fixed expenses
A record (accompanied by a rating) of a consumer's ability to repay debts and demonstrated responsibility in repaying debts.
credit history or credit report
This tax applies the same tax rate across low-, middle- and high-income taxpayers.
proportional tax (flat tax)
a savings plan for retirement
401(k)
The amount an insured person must pay before the insurance company pays the remainder of each covered loss, up to the policy limits.
deductible
This is the income received prior to taxes and deductions
gross pay
the higher the interest rate the ______ the monthly payment
higher
A tax that takes a larger percentage from the income of high-income earners than it does from low-income individuals.
progressive tax
what are three different ways identity theft can happen
phishing emails, dumpster diving, data breaches
A type of insurance that covers a portion of one's living expenses in the event that a subscriber becomes unable to work.
disability insurance
These types of expenses fluctuate or change from period to period. Examples include personal entertainment or travel costs, and other discretionary items.
variable expenses
This number is used by lenders to determine how much they charge you for interest on loans.
credit score
A tax that takes a larger percentage from low-income people than from high-income people. Though a tax that is generally applied uniformly, it hits lower-income individuals harder.
regressive tax
if you use a lot of your available credit could indicate to lenders that you might...
default on your loan (not pay it on time or back at all)
which two types of insurance are required
what are the 5 steps to creating a personal budget
1. determine your net income
2. list monthly expenses (fixed and variable)
3. track expenses regularly
4. subtract expenses from your income
5. make a new budget every month
what percentage should you keep your credit usage below to help maintain good credit?
30 %
The Federal Income Contributions Act (FICA) requires that you pay these two "payroll taxes" (for retirement and healthcare)
social security and medicare taxes