Budgeting
A plan for spending and investing to meet your wants and needs.
What is a Budget?
How would you avoid taxes?
Open ended. Funniest answer wins the points.
What are the two different types of interest?
What is Simple and Compound
True or False: Net income is less than Gross income.
What is true
How is a 401(k) beneficial to the total money you put into the plan?
The employer may match a ceratin amount of what you put in to the plan.
Brittney's monthly income is $400. Britteny's monthly expense ON SHOES is $500. Is this a viable spending method?
What is no.
What is the range of the Federal Income tax bracket?
10% to 35%
This type of interest grows at a constant rate.
What is simple interest?
Income before taxes
What is Gross income
True or False: A pension pays the retired employee more or equal to their working pay
What is False
True or False: An Envelope Budget HAS to be represented using physical seperation.
What is False
State one of the three federal programs most funded by taxpayer money.
Health/Medicare
Military/National Defense
Social Security
This type of interest grows at an exponential rate
What is compound interest?
Income after taxes
What is net income
What is the usual age to retire at?
65+ years of age
A type of budget where all your income goes to something productive.
What is a Zero-based budget?
What two taxes do FICA tax your income on?
Social Security and Medicare
The rule of 72 ONLY applies to this type of interest
What is compound interest?
True or False: Someone's pay stub shows both gross and net income
What is true
What are the 3 main types of retirement plans?
401(k), pension, and Roth IRA
Billy's monthly income is $2,323 monthly. $465 goes into his savings account. $697 go towards spending on wants. $1,161 goes towards expenses. What type of budgeting strategy is Billy using?
What is the 50-30-20 budget rule?
Billy Bob's monthly gross income is $12,000. He first puts 10% of his gross income into his 401(k) plan. After the 401(k) money is taken out, he has to pay a 7% federal income tax, 15% state income tax, and 7.65% tax for FICA. What is his take home pay?
$7,597.80
Billy Bob Joe loans $1,000 out of Jess's $1,000,000 and puts it into Bitcoin. It averages a compouding increase of 15% over the course of 5 years. Billy Bob Joe then gives Jess $2,000 back because she had a 100% interest rate on the loan. How much money does Billy Bob Joe net gain?
Billy Bob Joe gains $11.36
Bob Joe's gross income is $15,000 annually. His monthly tax on his income is $251. What is his monthly net income?
$999
Joe decides to change jobs with $30,000 in his previous 401(k) plan. He decides to rollover his funds into a personal retirement plan called what? When can he access his money tax-free?
A Roth IRA. At 59.5 years old.