Financial Responsibility
Comparing 2 or more items to find the best value
Cost Comparison
These taxes pay for schools, roads, libraries, and police
What are federal and state taxes?
Type of tax where a % of income is paid to state and federal government
Income Tax
The three types of financial institutions
Banks, credit unions, and online banks
- The money you offer toward the purchase
- usually 20% of the total purchase
Down Payment
Analyzing if the price is less than, equal to, or more than the benefit
Cost-Benefit Analysis
These taxes pay for people 65 + or have disability
Medicare
Type of tax where there's an additional charge on items you buy at the store
Sales Tax
This financial institution is owned by investors
and has greater accessibility across the nation
Banks
An asset or downpayment that the borrower offers the lender as a guarantee of the loan
Collateral
Identifying the cost of meeting future goals
Calculating Future Expenses
These taxes pay for retirement costs of other people
This is your income before taxes are taken out of it
gross income
This financial institution is owned by the members
and has lower interest rates on loans and higher interest rates on savings accounts
Credit Unions
A verb meaning to buy something with money that was loaned to you by a financial institution
Finance
A plan for future spending, saving. Weighing estimated income with expenses
Budget
Setting aside money for your own retirement account. Won't pay income tax until it's taken out
401(k)
This form outlines money taken out of paychecks from the past year to determine your tax refund
W-2
This shows lenders how risky it would be to let you borrow money.
Credit Score
Total purchase price - down payment
Loan Principal
How do we balance wants vs. needs
Teacher Evaluates
Setting aside money for childcare or medical expenses
Flexible Spending Accounts
The form you fill out when applying for a job to determine how much taxes will be taken out of your paycheck each month
W-4
The 5 factors of a credit score (or creditworthiness)
- payment history
- the amount owed to current investors
- length of credit history
- types of credit used
- number of open accounts
The cost of an asset over time as interest is charged on it.
Also known as what you will have paid at the end of the loan
Ammortization