Income
What are the 3 main types of income?
Earned, Passive, Unearned
What's an example of a need?
Any need like groceries or rent or any other need
How long should an Emergency Fund last you?
3-6 months
What is a stock?
Part of a company
What is credit also known as?
Loans
If you make $2000 and you also have $400 in tax deductions, how much is your taxable income (assume a 10% tax rate)
$1600
What is a fixed expense (give an example too)
An expense that's the same every month like car insurance
What does IRA stand for
Individual Retirement Account
What is the biggest/most common index fund?
S&P 500
How old do you need to be to open your first credit card?
18
What form tells your employer how much tax to withhold?
W4
What is the what does each section mean in the 50 30 20 rule?
50% Needs
30% Wants
20% Savings
When is your money taxed in a Roth IRA (before you pull it out or after)
Taxed before
How many years will it take some amount of money to double if they have a 6% interest rate
12 years
What are the 3 types of student loans?
Subsidized
Unsubsidized
Private
What does a W-2 form show?
Total earnings and withholdings
Name all 4 types of Budgets
Envelope method
50 30 20 rule
Pay yourself first
Zero-based budgeting
What is the maximum amount of money you can put in a Roth IRA per year?
$7000
What is the least risky investment?
Government Bonds
What is the highest credit score possible
850
You make $20,000 per year. Assuming you take the standard tax deduction what's your tax liability (assume a 10% tax rate for simplicty)
$500
What is a psychological trigger for impulse spending?
Stress/ FOMO
Name 5 types of bank accounts
Checking account
Savings account
Money market account
Certificate of Deposit
Brokerage account
IRA
What is the average return of the S&P 500 not accounting for inflation
10.33%
What is the biggest thing that makes up your credit score?
Payment History