How to Budget
What is likely the largest portion of an (independent) individuals budget?
Housing
Name a method for saving $ on food
-Meal Plan
-Make a list
-Shop by Unit Price
-etc
Protection against possible financial loss
What is insurance?
Coverage that provides protection for your belongings and any accidents that occur in your residence
What is renters insurance?
What is the best way to improve your credit score?
What is make payments on time?
What is the term for your paycheck BEFORE taxes come out?
In order to find your budget you must first subtract taxes from your income. This give you what metric?
Net Income
The contract you sign when you begin your rental at an apartment
a lease
A legal responsibility for the financial cost of another person's lossess of injuries
What is liability?
A federally funded health insurance program available mainly to people over 65 and to people with certain disabilities
What is medicare?
Name 2 factors that play into your credit score.
What is your payment history, your total debt, usage of available credit, length of credit history, credit mix and new credit?
True or False, it is better for tax purposes to have benefits directly deducted from your paycheck by an employer
True
What type of bills represent a Fixed Expense
What is
Rent, Student Loan, Car payment, insurance, etc.?
Name an additional expense associated with Car Ownership other than the payment
Gas, Insurance, Maintenance, Taxes
A fee paid for insurance (typically monthly)
What is a premium?
A number after which insurance should cover all health expenses including copays and coinsurance...(as long as they are in-network)
Out of Pocket Maximum
Why is it important to have good credit?
Help you qualify for the loan
Help you get a good % rate on a loan
I am due by April 15th
You can fill me out using Turbo Tax or you can do it yourself
What is a 1040, tax return
What aspects of a budget represent a Variable Expense
What is
Water bill, Electric bill, Grocery bill, "Wants" ?
Your housing should be approximately what % of your take home pay?
30%
The set amount that the policyholder must pay per loss on an insurance policy
What is a deductible?
A health payment (other than your premium) that you may pay even before/after your deductible is full
copayment/coinsurance
What is the highest your credit score can be
850
You will receive me by your employer
You need me in order to file your taxes
What is a W-2
What is the main advantage of Leasing a Car?
Lower Payment
Not committed to the Car
Name one method to use to pay off debt
What is
1. Snowball method
2. High interest (Avalanche) method ?
This type of car insurance covers weather events and things like a deer hitting your car.
What is comprehensive coverage?
Insurance that covers damage to your vehicle when it is involved in an accident
What is collision coverage?
What metric has the largest impact on your Credit Score
What is FICA?
Social Security/Medicare Payments