Savings and Strategies.
Interest Calc
Financial statements
Taxes
Definitions
100

What is paying yourself first?

When you get paid, you should try to put money away om your own savings before you spend money on anything else.

100

What is money doubling?

6% interest → 12 years

100

What is Net Worth or Balance Sheet?

Assets - Liabilities = Owners Equity or Net Worth

100
Fixed vs Variable budget

Fixed is a set price while variable varies from month to month

Fixed: Rent, Mortgage, Car Payment, Bills.

Variable: Food, Clothes, Ect

100
What is financial planning

A financial planner helps achieve financial goals  

200

What is a 50/30/20 budget?

50% should go to obligations, 30% should go to things you don't need, 20% should go to savings
200

What is investment goal

 $10,000 to $20,000 in 8 years → 9% interest

200
What are assets.

 What you own. House, Investments, ect

200
What is a pension?

A pension plan is an employer sponsored retirement plan that gives workers a leg up on retirement planning

200
What is time value of money?

 money in the present is worth more than the same sum of money to be received in the future

300

What is a zero based budget?

A framework that assigns a job to every dollar
300

What is simple interest?

$1,000 at 10% for 2 years → $1,200

300
What are Liabilities

What you owe. Mortgage, taxes, loans, ect.

300

Types of taxes and deductions

  • Federal Taxes vs. Amount Owed 

  • 401(k) Withdrawals 

300

What is Insolvency?

a state of financial distress in which a person or business is unable to pay their debts

400
What is a envelope budget? 

You put money in envelopes with every part of your after tax income

400

What is compound interest?

$1,000 at 10% for 2 years → $1,210

400

What is revenue and expenses

revenue is income and expenses are costs of what you buy.

400

What is a 401k and what happens when you withdrawal money before retirement?

a 10% early withdrawal penalty applies on withdrawals before age 59½, unless you meet one of the IRS exceptions.

400

What is net vs gross pay?

  • Overtime Pay 

  • Ways to get paid 


    • Wage

    • Salary

    • Tip

    • Commision

500

What is simple/compound interest?

Calculated annually on the amount you deposit or owe

500

What is Budgeting?

A plan to write down to decide how you will spend your money each month

500

How do you find net income

Revenue - expenses

500

Name all types of taxes?

  • Federal Income Tax (FIT) 

  • State Income Tax

  • Federal Insurance Contribution Act (FICA) 

  • 401(k) 

  • Other retirement plans:


    • Pension 

    • Roth IRA 

500

Name all smart goals and what they are

  • Specific: Clear and detailed.

  • Measurable: Quantifiable.

  • Attainable: Realistic.

  • Relevant: Meets a real need.

  • Timebound: Has a deadline.

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