Credit
A three digit number that represents your creditworthiness
Credit Score
The amount of money a person is paid from their job.
What is income?
The age you can begin receiving full social security benefits
Age 67
This is the initial payment made when buying a home
Down payment
This type of insurance covers medical costs from illness or injurty
Health insurance
This is the form you receive from your employer that reports your annual wages and taxes withheld.
Total Price / Number of unitsW-2
The most commonly used credit scoring model in the U.S.
FICO
This statement lists your assets, liabilities, and net worth
Balance Sheet
A retirement plan offered by employers where contributions are sometimes matched
401(k) or 403(b)
Interest
What does purchasing insurance allow you to do when you are faced with a risky situation or opportunity?
Transfer it
The percentage of income paid in taxes generally increases as income rises under this type of tax system (used in the U.S.)
Progressive
A number that shows how well a person manages their money, a financial grade.
What is credit score?
How is Net Worth calculated?
Assets - Liabilitites
Which type of IRA do you pay taxes on when you make contributions but your withdrawals are tax free?
Roth IRA
Something that is part of the homebuying process that can save you from having to make major repairs or having issues later on.
Inspection
This type of insurance provides income to your dependents if you die.
Life Insurance
You can reduce your taxable income by contributing to this employer-sponsored retirement plan
401(k) or 403(b)
Paying only this amount on your credit card bill will lead to more interest over time
Minimum Payment
This is a type of investment where you loan a company or government entity and earn interest.
Bond
This rule penalizes most retirement account withdrawals that are made before the age of 59 1/2
Early withdrawal penalty
What is the typical % down payment for a conventional mortgage?
20%
Auto insurance coverage that pays for damage to your own car from an accident you cause.
Collision coverage
The deadline for filing federal income taxes
April 15
What are the 3 credit reporting bureaus in the U.S.?
Equifax, Trans Union, Experian
The pay a person gets after deductions have been taken out
What is net income?
This type of IRA lets you make tax-free contributions, but you are taxed on the withdrawals you make during retirement.
Traditional IRA
What is one of the rules of thumb for homebuying that we discussed in clas
28/36 (no more than 28% of your pre-tax income and total debt shouldn't exceed 36% of pre-tax income)
OR
3 Times Your salary
Insurance that replaces a portion of your income if you're unable to work due to illness or injury
Disability insurance
The name of the tax form used by U.S. citizens and residents to report their annual income, claim deductions and credits, and calculate their final federal income tax liability or refund
1040