Taxes
What type of tax is taken directly out of your paycheck for Social Security and Medicare?
Payroll tax (FICA)
What is the difference between saving and investing?
Saving is safe, low-return money set aside; investing involves higher risk and potentially higher reward.
What’s one main difference between a bank and a credit union?
Banks are for-profit; credit unions are non-profit and member-owned.
What is one major cost of attending college besides tuition?
Room & board, books, fees, transportation.
Which payment method comes directly from your checking account?
Debit
What is sales tax?
A tax added to the price of goods/services at purchase.
What is an emergency fund?
Savings set aside for unexpected expenses (like car repair or medical bills). 3-6 months of income.
Name one service offered by financial institutions.
Checking accounts, savings accounts, loans, credit cards, etc.
If you make $12/hour and work 20 hours per week, what is your gross monthly income?
$960
Which method is best for small, everyday purchases like snacks?
Cash
Which level of government collects income tax?
Federal (sometimes state)
What does the Rule of 72 tell you?
How many years it takes to double your money given an interest rate.
What’s one fee you might get charged at a bank?
Overdraft fee, monthly maintenance fee, ATM fee, etc.
What percentage of a budget is typically recommended for housing?
30%
Which payment method can help build your credit history?
Credit Card
Give an example of something funded by federal taxes.
Military, Interstates, etc.
If you invest at 6% interest, about how many years will it take to double your money
12 years
Why should you compare interest rates before opening a savings account?
Higher rates mean your money grows faster.
Name one long-term consequence of taking out large student loans.
Large debt, smaller ability to buy a house/car, delayed financial goals.
What is one disadvantage of using a credit card?
Interest, debt, overspending, annual fees.
Which type of tax is often considered "regressive" because everyone pays the same rate regardless of income?
Sales Tax
What is one risk of not starting to save early?
You miss out on compounding growth and need to save more later.
Name two things you should compare when choosing a financial institution.
Fees, interest rates, services offered, accessibility, technology (apps).
Why is it important to include “savings” in your budget, even in college?
To prepare for emergencies and future expenses.
Which method offers the strongest fraud protection for online purchases?
Credit cards