Vocabulary
something that details your income & expenses (helps you plan your finances)
budget
type of economic system in which the government controls everything
command
the amount of money you make before taxes are taken out
gross income
numerical value that tells financial institutions how trustworthy you are
credit score
tax form that tells you how much money you've earned and how much in deductions has been taken out
W-2
the study of how goods and services are produced and consumed on both large and small scales
economics
number of producers is a shifter of
supply
the most common budgeting rule/strategy
50/30/20
what are the 3 basics parts of a loan?
principle, interest, & loan term
Tax form that you tell your employer how many dependents you have
W-4
cognitive bias that makes you make poor choices because you don't want to be left out
FOMO (Fear Of Missing Out)
point in which supply & demand are balanced
equilibrium point
the amount (percentage) you should be spending on needs
50%
type of loan that has extremely high interest rates and requires no minimum credit score
payday loans
$400
cognitive bias that makes you continue to use something/stick with something because you don't want to feel like you wasted time or money
sunk cost fallacy
economic system in which governments don't exist and historical customs determine roles
traditional
budgeting strategy in which EVERY dollar is accounted for
Zero-Based Budgeting
if you are too young/unable to get a credit card, you can become a(n) ____________ _________ on your parents' credit card
authorized user
What is Tax Day?
April 15th
A situation in which unlimited wants exceed the limited resources available to fulfill those wants
scarcity
the United States has which type of economic system?
Mixed
how much of your budgeting should housing be spent on?
30%
tells you important information about your NEW credit card such as grace period, APR, late/penalty fees, etc.
Schumer Box
the standard deduction
(minimum you can make & have to pay taxes)
$14,600