Budget & Finances
How do you open a bank account + what is direct deposit?
Government issued ID
Social security number/individual taxpayer ID
Proof of address (e.g. utility bill, etc.)
Initial deposit
Direct Deposit- when your job automatically deposits your paycheck into your bank account.
True or False: If a bank goes out of business and you have money in a checking or savings account, you lose your money.
False
FDIC (a gov. insurance) will give you your money back, if you have less than $250,000 in an account.
True or False: A federal law prohibits places like doctors' offices, universities, government agencies, etc., from releasing information about anyone over 18 to anyone (including family)
True - It's called FERPA
How do you get a job?
Answers will vary.
DMV (Department of Motor Vehicles) - issues driver's licenses AND non-driving IDs.
How would you make a budget?
Add up your expenditures (fixed and variable costs your wants/goals, and savings).
Subtract it from your income.
Money paid regularly at a particular rate for the use of borrowing money or for delaying the repayment of a debt
Interest
You move into a new apartment. What are utilities and how do you set them up?
Look up what companies handle water, sewer, electricity, natural gas, garbage, etc., at that residence. Then contact (online or phone) to set them up.
What do you do when you're struggling with something
Ask for help
Answers may vary
How do you keep track of everything you need to do?
Calendar or Planner + Reminders
In college, don't forget to go through EVERY syllabus and add due dates to your calendar
You take a job. Why does your paycheck not include your entire salary/wages?
Things that may be taken out:
Taxes, insurance, 401k (retirement) contributions, etc.
3 ways to build credit/increase credit score
Pay bills on time, especially loans
Student loans that are paid on time
Credit card - make a small charge each month and pay it off each month (make sure to get one that doesn't ding your credit score when you open)
W/o credit card - authorized user on someone else's card (be sure they have good credit), phone plan in your name, ask landlord if they report to credit bureau
Any time you write something for school or work, you should always proofread and do a __________ before you submit it.
spell check
When buying a house, the percentage of the home price should you try to save up to put as a down payment (to avoid extra fees).
20%
Steps to get a passport
1. Fill out the online form and print completed form.
2. Get a passport photo (drug stores often do this).
3. Collect your documents--official birth certificate w/stamp or seal + photo ID
4. Pay the fee.
5. Find an office that handles new passports and make an appointment.
6. Go to appointment and submit application.
Examples of long-term savings v. short-term savings
Long-term savings (usually over 5 years) - house, kids's college, retirement, etc.)
Short-term savings (usually less than 5 years) - travel, credit card debt, remodel, larger purchases like a bike, etc.
Different between a bank and a credit union
Bank - a for-profit business
Credit union - a type of bank that is not for profit (usually owned by the people who have accounts there)
You are alone and you get a flat tire. What do you do?
Change the tire yourself.
If someone stops, trust your gut. If they seem sketchy, tell them you're good and someone is coming.
Call AAA, a tow company, etc. (Sometimes insurance covers it.)
What can you do or use to find an apartment?
Networking (talking to people you know)
Craigslist (esp. if you are looking for a room to rent)
Zillow (esp. if you want an entire apartment)
You have $10 and need to make dinner (not go out), what do you make?
Answers will vary
How do you save money for the future?
Answers may vary
Tax differences between a 401k/Traditional and Roth IRA.
Roth IRA tax is paid now (when you put money in) but you don't have to pay taxes when you take money out at retirement.
401k/Traditional IRA is tax-free now but you have to pay taxes when you take money out at retirement. 401k is through your work. Traditional IRA you open yourself.
Your job might offer you a "total compensation" package. It includes your salary and what else?
Insurance, retirement, paid time off, and sometimes even education contributions (if you want to go back to school).
Where to get a copy of your birth certificate?
Vital Records office in the state you were born in