TAXES
What is tax evasion?
Using illegal means to avoid paying taxes
A plan dividing your income among spending and saving is called...
Budget
What provides coverage for losses due to damage or destruction of a home?
Homeowner’s Insurance
Does Marital status, race, etc. affect your credit score?
NO!!!!
Using someone else's money, promising to repay at a future date, and paying a fee for use of the money, is the definition for:
Credit
If you’re an independent contractor, What will you be sent?
Form 1099
What is the definition for opportunity cost?
The next best alternative that is given up when a choice is made
What is the largest and important asset of insurance?
-Income is the largest asset
-Disability Insurance and ability to earn living is an important asset
What are the differences between debit cards and credit cards?
Debit comes from checking account and Credit you pay off at a later date
What is a disadvantage of using phone cards, debit cards, electronic transfers, and ATM cards?
Expose consumers to greater likelihood of identity theft
What does IRA, IRS, and FIT stand for?
-(IRA) Internal Revenue Agency
-(IRS) Internal Revenue Services
-(FIT) Federal Income Tax
Amounts you have already committed to spending rent, car payments, car insurance, and credit card payments is called...
Fixed Expenses
By contrast provides lifelong protection as long as you pay the premiums, no loans, withdrawals or surrenders are taken, and the full face amount will be paid is called...
Permanent Insurance
what are the 5 C's of credit?
1. Character
2. Capacity
3. Capital
4. Collateral
5. Conditions
A company offers direct deposit of employees' earnings. The company will still provide each employee with a statement that lists the employees' ....
Gross pay, net pay, and the amount and type of deductions
The legal usage of the tax regime to one’s own advantage to reduce the amount of tax that is payable by means that are within the law is called...
Tax Avoidance
Why should you budget?
-To determine how much money you have to spend
-To decide how you want to spend your money
-To determine how to spend money in the future
-To stay out of financial trouble
True or False: Half of working Americans couldn’t make it one month before financial difficulties would set in, close to one in four Americans couldn’t make it in a week
True
Give 4 ways you can develop positive credit history:
1. Pay credit card balances in full every month
2. Pay credit bills on time
3. Be conscious of how credit cards affect your credit history
4. Check the monthly credit card statement for errors
A teenage boy has opened a Checking Account. He is surprised to find that though he is getting a written bank statement each month he is not getting his cancelled checks returned. The teenager should be aware that the reason cancelled checks are not returned is to:
Save the bank money associated with the copies of these checks
What are common tax mistakes?
-Forgetting to sign and date your return
-Entering your social security number incorrectly or not at all
-Making mathematical errors
-waiting until the last minute
-Forgetting to mail your payment
What does a budget do for you?
-Puts you in control
-Helps create a visual spending picture
-Helps you prevent impulse spending
-Enables you to keep track of how you spend your money
-Helps you create a savings plan
A health insurance plan that allows you to pay a monthly or quarterly premium in exchange for healthcare services require you to work with primary care physician who will direct your care and refer you to a specialist as needed is called...
Health Maintenance Organization (HMO)
Open-end credit is an extended line of credit established in advance and closed-end is a loan which the borrower must repay the amount in a specified number of equal payments.
Susan give Marie her ABC Credit Union debit card and her personal pin number so Marie could get $25 from Susan's bank account. Marie withdrew $100 instead of the agreed $25. How can Susan get the $75 back?
No bank or government agency is obligated to reimburse Susan because she authorized Marie to use her ATM card and pin number