Goals/Taxation
True or False: Short term goals are usually anywhere from 1-3 years.
True
You should have at least ____ months saved up in case of emergency
3 months
What is credit?
The act of borrowing money with the promise to repay it.
What age is retirement in America?
67
Which European country had devasting floods which killed at least 200 people?
Spain
The United States is a _________ tax. Meaning the more money you make, the higher tax bracket you get into.
Progressive
What is an emergency fund used for?
Medical bills, car repairs, job loss.
What is the difference between good debt and bad debt?
Good debt is seen as an investment. It'll increase your net worth over time.
When can you start drawing from Social Security?
62
Which year did day light savings start? (must be within 20 years)
1918
True or False: You earn 100,000 which puts you in the 24% tax bracket. You would pay 24,000 in taxes
False
If your monthly expenses are 5,000: How much should you have saved in your account? (min amount)
At least 15,000
What is the total debt in the United States? Must be within 300 million
1.3 trillion dollars
How does compound interest help you retire?
It grows your money over a long period of time.
What is an audit?
An audit is a systematic, independent, and documented process for examining and evaluating an organization's financial record
What factors can influence how much taxes you pay? Name 3.
Kids
Marriage
Wealth
Etc...
How does the envelope method work when budgeting?
Teacher's discretion
Who sets the interest rate?
The Federal Reserve
What is the difference between a Roth IRA and an IRA?
Roth is taxed now but withdrawls are tax free
What does it mean to withhold taxes?
To withhold taxes means to deduct a certain amount of money from an employee's paycheck and send it directly to the government on their behalf.
10% : 0-11,000
12% : 11,001 - 44,725
22%: 44,726 - 95,365
How much would a person making 58,000 a year pay in taxes?
8,067.16
We learned the 50/30/20 rule.
Define what 50%/30%/20% means. What are the categories?
50% for needs. 30% for wants. 20% for Savings/Debt
What is a credit score? Name 3 graded criteria.
A numerical rating that represents how trusted you are.
- Payment history
- Amounts owed
- Length of credit
- Credit mix
- New inquiries
How does a 401(k) work?
Employer sponsored. Will match up to a certain %
What year did "All I want for Christmas is You" come out? Must be within 3 years
1994