Study questions 1
what is a 401(k)?
A retirement savings plan offered by employers to employees that allows them to invest in their future
What is a checking account?
An account used for day-to-day spending, and funds can be accessed through check, debit card and more.
What is a debit card?
A plastic card or digital card that allows you to make purchases with the funds in your checking account.
What does deposit mean?
To put money in an account like savings or checking.
What is gross pay?
The amount of pay before deductions
What is an ATM and what does it stand for?
A machine that allows you to withdraw or deposit funds
What is credit?
the ability for someone to borrow money and pay it back at a later date.
What is a credit score?
a number assigned to a person based on factors like the ability to make minimum payments on time and in full. The higher the score, the more likely you will be able to get a good loan for a low or medium interest rate.
what is a fraudulent transaction?
a transaction not approved or not authorized by the account holder
What is net pay?
the amount of pay someone receives after deductions
What are bonds?
Loans to a company that pay a fixed rate of interest to a lender over time.
What is a credit card?
a plastic card or digital card that allows you to make purchases through a line of credit. (Money borrowed)
What are deductions?
Items withheld from a person's pay, usually relating to health insurance, retirement plans and taxes.
What is interest?
a charged incurred for borrowing or lending money, usually as a percentage of money owed.
what does minimum balance mean?
the minimum dollar amount a bank requires its customers to keep in their bank accounts, usually the amount it took to open the account. "$5"
What is a checkbook?
a book of blank checks
What is a credit card balance?
the amount of money owed to a credit card company.
what is direct deposit?
an electronic payment directly to an employee's account by an employer.
what is an issuer?
a company that provides credit cards
What does minimum payment mean?
the lowest amount of money required to be paid on a loan or credit card balance on each payment due date.
What is an overdraft fee?
a fee incurred when a bank covers a payment that is higher than the amount in your account. This fee puts your account into the negative and could result in the termination of your bank account.
What is a pay period?
the recurring schedule that determines how frequently a person is paid.
(Weekly / Bi-weekly / Monthly / Yearly)
What is a pay stub?
a piece of paper that lists your gross pay, deductions, withholding and net pay
What is the 50/30/20 rule?
Calculate the interest on this loan.
I borrowed $5,000 at an annual interest rate of 8.65% for a period of 3 years. How much interest should I expect to pay extra toward my loan?
$1297.50 extra in interest
My total amount after paying off the loan would be $6297.50