Income & Taxes
This is the form your employer sends you in January that summarizes your earnings and tax withholdings.
What is a W-2?
An essential financial planning tool that projects income and expenses, usually by month and year. It helps to know how much you can spend based on what you earn.
What is a budget?
This type of bank account lets you write checks and use a debit card.
What is a checking account?
This is the safest place to keep your emergency savings: not under your mattress, but in this type of account.
What is a savings account?
This is the economic concept that prices are determined by how much of something is available and how much people want it.
What is supply and demand?
This is the tax you pay on money you earn, and it can be federal, state, or local.
What is income tax?
This federal agency protects consumers and investigates fraud.
What is the Federal Trade Commission (FTC)?
This three-digit number helps lenders decide if you're a good credit risk.
What is a credit score?
A retirement account offered by many employers, especially with a matching contribution.
What is a 401(k)?
This part of the business cycle follows a recession, when the economy begins to grow again.
What is recovery (or expansion)?
A W-4 form helps your employer determine this amount to withhold from your paycheck.
What is federal tax withholding?
This is the term for a deceptive practice where a company advertises a low price to lure customers in.
What is bait and switch?
Paying only the minimum on your credit card leads to this long-term consequence.
What is long-term debt or interest accumulation?
This term refers to the concept of earning interest on your interest.
What is compound interest?
The total market value of all goods and services produced in a country in a year is called this.
What is Gross Domestic Product (GDP)?
This type of tax structure means the more you earn, the higher the rate you pay.
What is a progressive tax?
This strategy involves comparing the cost and quality of similar products before buying.
What is comparison shopping?
This is the fee you pay for borrowing money on a credit card or loan, expressed as a percentage.
What is interest (or APR)?
This investment type represents ownership in a company.
What is a stock (or share)?
This is the term for a rise in the general price level of goods and services.
What is inflation?
This government-run program provides retirement benefits and is funded through payroll taxes.
What is Social Security?
This consumer protection law gives you three days to cancel some signed contracts.
What is the 'Cooling-Off Rule' or the three day right of rescission?
This federal law entitles you to a free credit report from each major credit bureau once a year.
What is the Fair Credit Reporting Act (FCRA)?
A Roth IRA lets you withdraw your money tax-free in retirement because you contributed with this type of income.
What is after-tax income?
This is the term for the flow of money, goods, and services between households and businesses. Cartoon Mr. Clark tried to tell us it was circular saw.
What is the circular flow model?