Investments 101
This type of asset decreases in value with time and is not considered a long-term investment.
What is a depreciating asset?
This form is provided by your employer and shows how much money they’ve withheld for taxes throughout the year.
What is a W-2 form?
This type of account is used for day-to-day transactions like paying bills, shopping, and withdrawing cash.
What is a checking account?
Pay this bill and your lights stay on; skip it, and you're in the dark.
What is an electric bill?
_________vs.________ is a term used to describe weighing the gains/losses one may encounter when investing.
What is risk versus reward?
This filing status is for individuals who are unmarried, not head of household, and do not qualify for any other status
What is "single"?
These fees are commonly charged when you withdraw more money than you have in your checking account.
What is an overdraft fee?
You pay this to your insurance company in exchange for coverage during an unexpected accident or event.
What is a premium?
This is a safe, low-risk savings account offered by banks or credit unions that pays a fixed interest rate on a lump-sum deposit for a set period, known as a term.
What is a Certificate of Deposit (CD)?
When the IRS reviews your tax return to ensure accuracy and compliance it is known as this.
What is a tax audit?
The bank sends you this document, usually monthly, that shows all transactions in your account including deposits, withdrawals, and fees.
What is a statement?
When your paycheck stays the same but prices for everything from rent to eggs rise, economists use this term.
What is inflation?
These retirement accounts allow you to invest money tax-deferred for the future, with contributions coming from your salary and sometimes matched by your employer.
What is a 401(k) or 403(b)?
This form is filled out when you first start a job and tells your employer how much federal tax to withhold from your paycheck.
What is a W-4 form?
What is a fraction?
Even with health insurance, you’re often required to pay this fixed amount at the time of a medical visit.
What is a copay?
These are types of investments where money is pooled from different investors to purchase a diversified portfolio of stocks, bonds, or other securities, and is typically managed by professionals.
What are mutual funds?
Unlike an itemized deduction, this type uses a specific dollar amount to reduce your amount of taxable income.
What is a standard deduction?
This small, unique number at the bottom of a check identifies the bank where the account is held.
What is a routing number?
Even if your car never moves, you may still pay this yearly or monthly government fee.
What is car registration (or vehicle excise tax)?