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A car payment is an __________________
(asset, liability, income, expense).
What is an expense?
An investment that is a share of ownership in a corporation.
Stock
This type of bias can be reduced with education. Example: Red cars get pulled over more frequently for speeding than other cars.
What is cognitive bias?
This includes all the records of loans you have taken out and paid back over your life.
Credit history
An organized plan for how someone can spend/save their money.
What is a budget?
A monthly document prepared by your financial institution which shows all of the transactions related to your account.
What is a bank statement?
What is Social Security, investment income, IRA distributions, etc.?
When people refer to "Tax Day", what date are they referring to?
April 15, the typical deadline to file your taxes
An agreement where an individual makes monthly payments to use a car for a certain length of time instead of purchasing the car.
What is a lease?
An investment that is actually a loan to a corporation or a government.
Bond
A person – such as a parent, close family member or friend – who pledges to pay back the loan if you do not.
What is a co-signer?
This numerical representation of a person's creditworthiness is often used by lenders to assess the risk of lending money.
What is a Credit Score?
What should you do with the surplus if your total amount of expenses is less than the total amount of income.
What is save or invest?
A certain amount of money that must be kept in an account as required by that particular financial institution
What is Minimum Balance?
True or False
You must wait until you are 65 years or older before you can retire.
The tax form that determines how much Federal income tax money your employer should withhold.
What is a W-4?
An agreement between you and a lender that allows you to borrow money to purchase or refinance a home.
What is a mortgage?
The type of investment where you pool money from multiple investors to buy a diversified portfolio of stocks, bonds, or other securities.
What is a mutual fund?
Name a company that is considered part of FinTech.
What is Venmo, Paypal, Ally, etc.?
This term refers to the interest rate charged on the balance of a credit card if the full amount is not paid by the due date.
What is the APR (Annual Percentage Rate)?
A car payment is an __________________
(asset, liability, income, expense).
What is an expense?
Another word for the cost of borrowing or price of money.
What is interest rate?
The main reason you should start saving for retirement at a young age (HINT: has to do with interest rates)
What is benefitting from interest compounding?
Type of tax paid if you make a profit on an investment.
What is a capital gains tax?
Complete the statement:
When selecting your car payment plan, the _____ your loan term is, the lower your monthly bill will be. However, your overall interest will be ______.
longer; higher
This stock market index tracks the performance of 500 of the largest companies in the U.S.
What is the S&P500?
A type of interest that grows not only on the principal but also on all accumulated interest over time.
Compound Interest
This is the maximum amount of money a credit card company will allow a cardholder to borrow on a single card.
What is Credit Limit?
Your Assets minus your Liabilities gives you this important figure to measure your wealth.
What is net worth?
The rate at which the price of goods increases and consumer purchasing power decreases over time.
What is inflation?
What are weather, taxation of social security benefits, state income taxes, property taxes, etc.?
The most common form you use to file a tax return with the IRS.
What is a 1040?
The type of insurance you need to have if you are a homeowner
What is property insurance?
The practice of investing in a large variety of stocks, bonds, and/or funds as a way to as a way to reduce your overall risk.
What is diversification?
One of our guest speakers and what they discussed during class.
Who is Matt Aden and investing or Who is Kelsea Bernasek and taxes?
Some credit cards offer cash back, travel rewards, or points for purchases, collectively known as these.
What are rewards or loyalty cards?
Your wages AFTER taxes and deductions.
Net wages
A fee charged to your account when it lacks the funds to cover a withdrawal, but the bank allows the transaction to go through anyway.
What is Overdraft Fee?
This type of IRA taxes your contributions but allows you take distributions tax-free after age 59 1/2.
What is a ROTH IRA?
When part of your pay is taken out for FICA, what is that for?
What is Social Security/Medicare?