Renting/Buying a House
It is often cheaper than owning
What is renting?
Money that is given to another person/business in exchange for repayment of the principal amount plus interest
What is a loan?
The ability to borrow money or access goods or services with the understanding that you'll pay later
What is credit?
Purchasing a financial product with an expectation that it will gain in value
What are investments?
The type of account typically used for spending
What is a checking account?
Owner or Renter -
A twenty-two year old who just finished college. She is engaged to a plumber and wants to save up for a 3,500 square foot home in Phoenix, Arizona.
What is a renter?
Charge of money given by authority to people or property for public purposes
What are taxes?
The amount of money paid for the use of someone else's money
What is interest?
Loans to government or businesses that you can earn interest on
What are bonds?
The monthly fee to your financial institution for it's services
What is a maintenance fee?
An accounting technique used to periodically lower the book value of a loan or an intangible asset over a set period of time
What is amortization
Federal program that provides health care coverage for all US citizens age 65 or over
What is Medicare?
A number a person has that indicates to lenders their capacity to repay a loan
What is a credit score?
Ownership in a corporation, also called a share
What are stocks?
Savings account transfers money to your checking to cover lack of cash due to overspending
What is an overdraft protection?
Tax paid on property owned by an individual or other legal entity, such as a corporation
What is a property tax?
Personal information you will need to prepare your tax return includes this
What is your Social Security Number?
Object allowing the holder to purchase goods or services on credit
What is a credit card?
Investments run by a manager that consist of a variety of investment instruments
What are mutual funds?
Occurs when your checking account withdrawals bring your account balance to zero
What is an overdraft fee?
The amount of capital invested or owned by the owner of a company
What is equity?
An Internal Revenue Service (IRS) tax form that is filled out by employees to indicate their tax situation to their employer
What is a W4?
When you earn interest on both the money you've saved and the interest you earn
What is compound interest?
Some examples are age, risk tolerance, and investment goals
What are factors that determine degree of risk investors are willing to take?
The average fee per transaction that occurs when your account is overdrawn
What is $35