Check, please!
What is the official term for "take-home pay"?
Net Pay
Which is a safer way to invest:
A) Buying individual stocks from the stock market
B) Buying an Index Fund
C) Buying a bond
C) Buying a bond
What is the recommended down payment for a home loan?
20%
What do you call the amount you pay to have insurance every month?
Premium
What form tells your employer how much they should withhold from your check for Federal Income Tax?
W-4
What type of financial institution is co-owned by members and not-for-profit?
Credit Unions
What do you call a employer-sponsored pension account that employees can contribute to directly from their paychecks?
401k
What are two ways you can improve your credit score?
Possible answers may include:
Use less than 30% of credit limit
Pay card off in full each month
Have multiple credit lines
Have a long credit history
Pay your bills on time
This type of auto insurance is required in most states and covers damage you cause to another person or their belongings during an accident
Liability Coverage
What is a progressive tax?
An income tax that increases rates as income rises
What is it call if you withdraw more money than you have from your checking account?
Overdraw
What is a bond?
A loan you give the government or a business in exchange for interest
What do you call the amount you pay for credit usage (interest rate+ fees)
APR (Annual Percentage Rate)
What do you call the amount of money an individual has to pay out-of-pocket before coinsurance kicks in?
Deductible
What is the difference between a need and a want?
A need is something you have to have to survive, A want is something you would like to have but can live without
What are three ways to spend money from a checking account?
Withdrawing cash, writing a check, using a debit card, linking bank info
Why is it useful that an IRA doesn't tax money until you take it out of your retirement account?
It allows you to gain compound interest
What is the FAFSA?
The application you submit in order to determine eligibility for federal student aid
What type of insurance helps cover funeral expenses and loss of income after someone dies
Life insurance
What is the difference between a fixed expense and a variable expense?
A fixed expense stays the same from month to month and a variable expense is different each month
Name two deductions that you will have taken from your paycheck once you get a job
Answers may include:
Medicate, Taxes, Social Security
What do you call an investment that pools money together with other investors to purchase a diversified set of stocks, bonds, and real estate.
Mutual Fund
Bailey purchased a home for $200,000. She paid $40,000 as a down payment and borrowed the rest from her bank. What is the principal of Bailey's loan?
$160,000
What type of insurance covers your belongings inside your apartment?
Renter's Insurance
List three ways to protect yourself from identity theft.
Answers may include:
Don't use public wifi to access bank info, don't share your passwords, shred any documents or cards with your information on them before throwing them away, don't put your information unsecured websites, check your bank statements each month, set withdraw alerts, etc.