Taxes
What is the difference between Gross and Net pay?
Gross is the total before deductions
Net is after deductions (what you take home)
What are our 5 basic needs?
Food, Water, Shelter, Clothing and Air
What are some cons of a checking account?
Fees
No Interest
How does a savings account work?
You deposit money, the bank loans it out, they pay you interest
What does YTD stand for and mean?
Year-to-date, and it means from the start of the year until now
Name a state that pays no Income Tax
Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming
What is something that is a need in our area that is not everywhere in the world?
Internet/ Computer
Transportation (Cars)
Phone
What are 3 pros of having a checking account?
Easy to budget (keep track of expenses)
Protection
Bill Pay
Free Check Cashing
Debit Card
What are 2 pros of a savings account?
Secure
Interest
What is the difference between a checking account and a savings accounts
Checking account is used to pay for things
Savings account is where money is saved and cannot be touched
Name a deduction that is taken out of your paycheck that is not taxes
Retirement
Medical benefits/ Dental
Insurance (Life, health etc)
Name something that is a Public Need
Hospitals
Schools
Police, Firefighters etc
Roads
Why do most checking accounts not pay interest?
You can take out the money whenever, so the bank does not use that money to give out loans and invest
Why can an online savings account have a higher interest rate than a a traditional
They have no building so expenses are lower
What tax does our federal government make the most revenue on?
Income Tax
Name the 3 ways a person can file their taxes and a pro and con of each
By Paper (1040 Form): Free but can make mistakes and time consuming
Online App (TurboTax): Easy and helpful but cost money
Accountant: Easiest and most likely will save you the most money but the most costly
Name 3 reasons why budgeting is so important
Easy to track expenses
Easier to Pay bills
Easier to save for large expenses
Why might someone pay for a premium checking account instead of using a free one?
Interest
Of the 4 types of savings accounts we went over, Which one(s) can you write checks out of and pay bills using?
Money Market Account
Name the 2 of the top 4 things our government uses our tax money on each year
1. Health
2. Social Security
3. Defense
4. Interest on Debt
What does the standard deduction mean?
A dollar amount that non-itemizers may subtract from their income before income tax is applied
When budgeting for a car, name 3 things you need to budget for other than the cost of the car
Maintenance
Gas
Insurance
Registration
Name 3 possible fees you can pay for a checking account
Overdraft
Monthly Maintenance
ATM
NSF
Paper Statement
What does CD stand for and explain what the account does?
Certificate of Deposit
They are timed accounts
What is the difference between a W-2 form and a W-4 form?
W-2 is a form sent to you by your employer that is used for taxes and shows your taxes withheld
W-4 is a form you fill out your first day of work that shows how much money you want withheld for taxes