Credit
Is it possible to have no credit / credit score?
Yes!
Insurance for new cars is typically ______ compared to used cars.
Higher / more expensive
Insurance that covers loss or damage to your home.
Home Insurance
When creating a budget it is always better to ________ your income.
An example of an employer sponsored retirement account is a ______.
401(k)
Explain an introductory rate
A temporary interest rate used to entice customers to apply for a credit card.
Auto insurance that is required in KY
Liability
A mortgage in which the interest rate remains the same throughout the life of the loan.
Fixed-rate mortgage
When creating a budget it is always better to ________ your expenses.
Overestimate
What does IRS stand for?
Internal Revenue Service
Although credit cards and debit cards look the same, they do not work the same. Explain the difference.
Debit cards take money directly from your bank account where credit cards are essentially a loan that you have to pay back (plus interest)
Explain a beneficiary.
The individual or group of individuals named to receive the benefit of a life insurance policy.
The monetary value of your ownership.
Equity
Expenses that don't change are ____________. Give one example.
Fixed expenses
A report sent from the employer to both the IRS and the employee, showing gross income, total taxes paid and total voluntary deductions.
W2
What is considered a perfect credit score?
850
Name 4 types of insurance.
Health, Home, Auto, Life
A sum of money that you pay at closing.
Down Payment
Expenses that vary are __________. Give 3 examples.
Flexible expenses.
Taxes aren't taken out until you withdraw money from this retirement account.
List 3 things that will show up on your credit report.
Personal information, credit cards, loans, late payments etc.
The agreement or contract between an individual and an insurance company is the _________. The cost is referred to as the _______.
Policy, Premium
A legal document that uses property to secure a loan.
HELOC
Define surplus.
Money left over after all expenditures.
What is a W4?
Tax form completed by an employee before they start work