Budgeting/Student Loans
What is a ROTH IRA?
A retirement account that grows the amount of money put into it overtime,
What is the number ranging from 300-850 that measures your creditworthiness?
Credit Score
What are the 3 different categories for taxes?
Taxes on what you buy, own, and earn.
What is the purpose of a retirement plan?
Keep up with expenses and maintain a lifestyle when you aren’t employed or working anymore.
What are Credit Cards?
A type of payment card that borrows money to a certain limit
What is the 50/30/20 method?
Its when you put 50% of your income to needs, 30% to wants, and 20% into savings or investments
What is the most important factor in your credit score?
Payment History
What were the 4 most common types of taxes discussed?
Income Tax, Payroll tax, Property Tax, and Sales Tax.
Name one example where you can put your money when investing?
Bonds/The Stock Market/A Savings Account
What is Financial Literacy?
Having the ability and knowledge to manage your money in a responsible way.
How much money can you put into a ROTH IRA per year?
$6,500
What is the abbreviation for an interest rate called?
APR
The IRS has 3 main ways of contacting you, through email, phone calls, and text messages. True or False?
False! The IRS will never contact you directly this way.
Why should you set goals for yourself in investment & retirement?
Manage spending/helps with prioritization
What are the 2 types of loans?
Subsidized and Unsubsidized loans
Do governments pay the interest on subsidized loans?
YES
How much of your credit limit should you utilize?
30%
A Tax Credit lowers your tax liability in relation to your tax rate. True or False?
False! A Tax Credit is a dollar to dollar reduction, while a Tax Deduction is a reduction related to your tax rate.
Define a 401(k)
A retirement savings plan (that is offered by employers)
What is income tax?
Tax on income by businesses through withholding or deducting money from a paycheck
Does the government help you pay for your unsubsidized loans?
NO
How much does credit age factor in your credit score?
15%
How is Property Tax evaluated?
Assessed value of the property multiplied by your Tax Rate.
Referring to the steps of investing, which step covers establishing an emergency fund?
Determine how much you can afford to invest
What were the 2 types of stocks mentioned
Dividend and Growth