Investments
A 401k (primarily for private-sector employees), a 403b (primarily for non-profit organization employees), and a 457 (primarily for government employees) are plans where workers contribute money towards ____.
What is: Retirement
Though it can save you money, the majority of Americans do not do their own taxes. Name ONE of the six apps (we learned about) that provides assistance in filing your tax return that is available for public use (sometimes for free!).
Free Tax USA
TurboTax
Tax Act
H&R Block
Taxslayer
Credit Karma
Plus others...
Describe ONE thing you can do to stand out in an interview.
Some ideas: dress to impress, share personal anecdotes (stories) about relevant experiences, connect the skills you acquired in your (potentially limited) professional experiences to the job, establish a connection with your interviewer if you researched them (maybe you both know the same person, went to the same school, etc.), ASK QUESTIONS, etc.
When you get a consistent job, you should fill out a form for THIS, which will allow your employer to put money from your paycheck immediately in an account(s) of your choice.
What is: Direct Deposit
Your SSN will be used by your employer to pay you, by your healthcare provider to give you necessary coverage, and by a wide variety of important institutions in your life. It is your identity and it is essential that you memorize it. What does SSN stand for?
What is: Social Security Number
What are TWO factors that influence the growth/decline of a stock market?
a) Government policy and the release of data (GDP, unemployment, inflation, etc.)
b) Performance of major industries like housing market or construction market, etc.
c) Policies of the Federal Reserve (Fed).
d) Companies' announcements of corporate earnings or staff changes.
e) Weather.
f) War and Conflict.
g) Natural disasters.
h) Major Election.
Name TWO categories of products where women often encounter the "pink tax."
Personal Care: razors, deodorant, hair products, lotion, menstrual products
Clothing: jeans, shirts, sweaters (but NOT underwear)
General toys
Services: dry cleaning, haircuts, car repairs (but NOT insurance)
In a world where they are becoming less common, describe TWO reasons why it is a good idea to write a cover letter .
A.I.D.A. Framework...
Attention: elaborate on who you are (Ex: your attributes) to extend what you have on your resume
Interest: explain why you want the job at that specific company/organization
Desire to take Action: show that you are ready to move forward by meeting with them and setting up an interview
Describe the TWO main differences between credit cards and debit cards. Hint: think about the WHEN and HOW MUCH.
Debit Cards: takes out of your account right away, can only spend how much is in your checking account.
Credit Cards: takes out of your account at the end of month, you can spend more than what is in your checking account (but you have a "credit limit")
Why do some institutions charge a relatively high "sticker price" for tuition but then offer aid/grants/scholarships to many students?
Why is: to give the perception that they are ELITE, collect A LOT from those who can pay and make those who pay less feel like "privately" they are getting a bargain
By investing (even a small amount) in various funds or equities EARLY in life, it creates a snowball effect that helps you become wealthier over time by taking advantage of THIS CONCEPT.
What is: Compounding (Compound Interest)
Melanie sets aside a certain portion of her savings from her paycheck at work for a special fund which is tax-free. She can spend that money on healthcare-related products and services like doctor's visits, band-aids, sunscreen, first aid kits, aloe vera, etc. within that year. If she doesn't spend that money by the end of the year, though, her employer gets it. This risky loophole is called WHAT?
What is: an FSA (Flexible Savings Account)
Students and young people often struggle to convey why they are qualified for a position because they might not have a lot of jobs/internships/awards/etc. While it is difficult, it is absolutely possible to overcome this phenomenon, know as WHAT?
What is: the "Experience Paradox"
If you carry a balance on your credit card for a particular month, you are charged an APR set by your credit company. What do these two terms mean?
Balance: the leftover debt that you have not paid off and still owe (though balance can also simply mean the money in your account)
APR: Annual Percent Rate (a specific percentage that you pay in interest on the balance)
What are THREE ways you can protect your personal data and other important information?
Some ideas:
1) Make different (strong) passwords for different groupings of accounts and periodically change them.
2) Install anti-virus software.
3) Understand the signs of phishing and delete emails/block callers.
4) Don't give out personal info unless you've spoken with a representative of an organization directly.
5) Use communication apps with encryption.
6) Don't post pictures of you traveling while you are away.
7) Cover your webcam with tape when not using it.
8) Invest in a (free?) VPN or virtual private network which automatically shields your browsing information.
9) Use two-factor authentication.
10) Cover your PIN number with your hand at ATMs.
When evaluating individual stocks, it's important (as a final step in the Schahlerland Process) to consider whether that company (no matter how strong or weak, big or small) has an overvalued or undervalued stock price at that moment in time. ANY investor can use sites like Yahoo Finance to find this data. Name ONE statistic or metric where we would want to see a relatively LOWER number to feel confident investing.
Price to Earnings (P/E) Ratio: stock price / earnings per share
Price to Book (P/B) Ratio: stock price / book value of the stock
Price to Sales (P/S) Ratio: stock price / revenue from the year
Debt to Equity (D/E) Ratio: liabilities / value of shares
Market Cap and EPS are better if HIGHER
Elon goes to the bank and asks to borrow money. The bank asks him what he is willing to offer in collateral (i.e. what can the bank take from him if he is unable to pay it back). He offers $10,000 in shares of Tesla stock if the bank gives him $5,000 in cash. Now he has money to spend without having to pay income taxes (he didn't earn the money from a job) or capital gains taxes (he didn't sell any stock). He can keep on borrowing and not paying taxes in this manner until he passes away. This loophole is called WHAT?
What is: "Buy, Borrow, Die"
Note - this is primarily used by the wealthy, but can apply to average income earners if they inherit a lot from something in a particular fiscal year.
It is important to closely read over the description and responsibilities of a job posting so that you can tailor the language in your cover letter and resume specifically to that job because companies/orgs that get a lot of applications might use THIS, which filters applications by keywords and other factors.
What is: Applicant Tracking System (ATS)
One of the key factors in determining your credit score (which is confusing) is THIS, which is how much money you've spent in a month compared to your credit limit in the month. You want THIS value to be low.
What is: Credit Utilization Ratio (CUR)
What are THREE reasons you learned about that helped explain the rising cost of college?
What are:
1) Inflation
2) Amenity madness
3) Salaries of staff (though they have barely moved since the 70s and some adjunct - or part time - professors make even less)
3) Public demand increase for college
4) Less funding from state and federal government
Unlike individual stocks and bonds, which can be bought or sold at any time while the market is open (9:30am-4:00pm Mon-Fri), specific bundles of stocks and bonds bought together to diversify an investor's portfolio can only be bought or sold at the price set at the end of the day. This TYPE of bundle is the exception to that rule...it can be bought or sold at any time during the day.
What are: ETFs (Exchange Traded Funds)
Jeff and Anne "flip" houses for a living. If they decide to sell a house they've worked on and roll the profit immediately into the purchase of another house, you don't have to pay capital gains taxes on that profit. Originally intended to help farmers barter with livestock and land, this loophole is called WHAT?
What is: 1031 Exchange
Describe the FOUR of the most common lies that people put on a resume.
What are...
1) Hiding employment gaps
2) Bogus college degrees
3) Embellishing (exaggerating) experiences or titles
4) Language proficiency
When you buy a car, you want to do your research in advance. If and when you negotiate with a salesperson, they will focus a lot on the "MSRP." What does this stand for?
What is: Manufacturer's Suggested Retail Price
Note: this often includes extra add ons. Instead you should try to find out the invoice price (what the dealership paid the manufacturer) and be willing to go up a bit from there.
The Biden Administration started a program to forgive (or wipe away) some college debt for low and middle income individuals who qualified for this SAVE Plan? The Trump administration has largely blocked this program from continuing. What does SAVE stand for?
What is: Saving on A Valuable Education