Objective 1
What are two types of depository institutions?
commercial banking and credit union
How do calculate net worth?
assets minus liabilities=net worth
What are three types of income?
earned income, unearned income, received income from government programs
Automated Teller Machine (ATM)
A machine that allows individuals to complete certain transactions from the machine without human assistance.
Interest rate
The percentage rate used to calculate interest.
What is a financial service?
financial advice
What are three types of taxes?
income tax, payroll tax, sales tax
How do you calculate a net gain or a net loss?
income minus expenses=net gain or net loss
Property tax
a tax on property, such as land, building (including homes), and automobiles.
Income received from sources other than employment.
Unearned income
What is online banking?
completing a transaction on a internet site
What is social security?
income for retirees, people with disabilities
Is this a net gain or net loss? income 1,600- expenses 1,65.42= -57.42
net loss
Net worth
A measure of financial wealth and indicates the monetary value of all possessions that a person or household owns, minus the total amounts owed to others.
A measurement of how much a person or household owns once all debts have been paid.
Wealth
How does a depository institution keep your money safe?
Secure place, insurance
What is Medicare?
pays for health care for senior citizens
what ways can you develop a spending plan?
paper and pencil, spreadsheets
An individual's income earned as salary or wages before taxes and other deductions.
Gross income
Income and Expense Statement
Lists and summarizes income and expense transactions that have taken place over a specific.
What service does a gas station provide?
gas, food, drinks and cigarettes
Who pays taxes?
tax payers
Why is a spending plan an important part of financial planning?
increase net worth
helps set and reach goal
An income and expense statement sometimes referred to as a budget which records both planned and actual income and expenses over a period of time.
Spending Plan
Allows customers to complete certain transactions from a secured Internet site by using a username and password from any place in the world with Internet access.
Online banking