Finance Services
What is the FDIC and what does it do?
Federal Deposit Insurance Corporation; insures deposits in banks
What is the main purpose of the FAFSA?
To apply for financial aid for college
What is the primary benefit of having health insurance?
It covers medical expenses and reduces the financial burden of healthcare costs
What is the difference between gross income and net income?
Gross income is the total earnings before deductions; net income is the take-home pay after deductions
Why is it important to review and reconcile your bank statements regularly?
To ensure accuracy and catch any errors or fraudulent charges
Which type of financial institution is owned and operated by its members?
Credit Union
Which type of degree typically takes two to three years to complete at a community college?
Associate Degree
Which type of insurance covers damage to your home and possessions within it?
Homeowners Insurance
What is a W-4 form used for?
To determine the amount of taxes to be withheld from your paycheck
What is the purpose of life insurance?
To provide income to beneficiaries after the policyholder’s death
What is an overdraft fee?
A fee charged for spending more than your account balance
What is the primary goal of creating a college resume?
To showcase your academic achievements and extracurricular activities
What is a deductible in an insurance policy?
The amount of money you pay out of pocket before the insurance company pays
What is the primary purpose of a tax return?
To report your income and calculate the taxes you owe or the refund you will receive
What is Private Mortgage Insurance (PMI), and why is it required
Insurance that protects the lender if the borrower defaults on the mortgage
What is the purpose of reconciling your bank account?
To ensure you and the bank agree on how much money is in your account
What does the term "unemployment rate" refer to?
The percentage of the labor force that is jobless and looking for work
What is identity theft protection?
Protection against financial loss due to fraudulent use of personal information
What is a standard deduction?
A set amount that taxpayers can subtract from their income before calculating taxes
What is the purpose of estate planning?
To manage assets after death
Which type of insurance provides coverage for your vehicle in case of theft or damage not caused by a collision?
Comprehensive Insurance
What is the main benefit of obtaining scholarships and grants?
They provide free money for college that does not need to be repaid
What is umbrella insurance?
Additional liability insurance that provides extra coverage beyond other policies
Which type of tax is based on the purchase of goods and services?
Sales tax
What is the difference between earned income, passive income, and investment income?
-Earned income is any money you make by working
-passive income is anything you earn without requiring much effort
-investment income is money you receive from your investments as they grow