Taxes, Credit & Loans
What is a W-4?
A W-4 form allows your employer to withhold the correct federal income tax from your pay.
What is interest?
Money that is paid regularly at a particular rate for the use of money lent, or for delaying the repayment of debt.
What is insurance?
Insurance is a means of protection from financial loss in which, in exchange for a fee, a party agrees to compensate another party in the event of a certain loss, damage, or injury.
What is a Bear Market?
When a market experiences prolonged price declines. It typically describes a condition in which securities prices fall 20% or more from recent highs amid widespread pessimism and negative investor sentiment.
What are consumer options when it comes to resolving disputes with a company?
Consumers have various options for resolving disputes with a company, including contacting the company directly, filing a complaint with a consumer protection agency, seeking mediation or arbitration, or pursuing legal action through small claims court or a class-action lawsuit.
What is a W-2 form?
A W-2 tax form shows important information about the income you've earned from your employer, amount of taxes withheld from your paycheck, benefits provided and other information for the year.
What is simple interest and its equation?
Interest calculated on the principal portion of a loan or the original contribution to a savings account.
Equation: Interest = Principal x Rate x Time
What is a deductible?
In an insurance policy, the deductible is the amount paid out of pocket by the policy holder before an insurance provider will pay any expenses.
What is a Bull Market?
The condition of a financial market in which prices are rising or are expected to rise. The term "bull market" is most often used to refer to the stock market but can be applied to anything that is traded, such as bonds, real estate, currencies, and commodities.
What is a chargeback, and how does it protect consumers?
A chargeback is a consumer protection mechanism provided by credit card companies and banks. It allows consumers to dispute a charge and request a refund if they believe they were billed incorrectly or did not receive the promised goods or services. Chargebacks provide a safety net for consumers by giving them a means to reverse fraudulent or disputed transactions.
What is a 1040 form?
Form 1040 is used by U.S. taxpayers to file an annual income tax return.
What is compound interest and what is its formula?
Interest charged/earned on interest; you earn interest on the initial principal plus on the interest that accumulates over the other charges.
Formula:
S = P (1 + r/n)^nt
S = future value
P= principal
R = interest rate in decimal form
N = number of times per year that interest is calculated
T = time in years that money is invested
What is a liability?
A liability protects against loss as a result of injury to another person or damage to that person’s property.
What are stocks?
Also known as equity, is a security that represents the ownership of a fraction of the issuing corporation. Units of stock are called "shares" which entitles the owner to a proportion of the corporation's assets and profits equal to how much stock they own.
How does consumer protection legislation safeguard consumers?
Consumer protection legislation sets forth laws and regulations designed to ensure fair treatment and safeguard consumers' rights. It establishes guidelines for product safety, fair pricing, advertising practices, and disclosure requirements. These laws provide consumers with legal recourse if they encounter deceptive or unfair business practices, helping to promote a fair and transparent marketplace.
What is a mortgage?
A mortgage is an agreement between you and a lender that gives the lender the right to take your property if you fail to repay the money you've borrowed plus interest.
What is the Rule of 72?
A quick, useful formula that is popularly used to estimate the number of years required to double the invested money at a given annual rate of return, it can also compute the annual rate of compounded return from an investment given how many years it will take to double the investment
What is a beneficiary?
The person designated to receive money.
What are Dividends?
a sum of money paid regularly (typically quarterly) by a company to its shareholders out of its profits Bonds - debt instrument that represents a loan made to the issuer. Governments (at all levels) and corporations commonly use bonds in order to borrow money.
What is the role of consumer advocacy organizations in protecting consumers?
Consumer advocacy organizations play a vital role in protecting consumers' interests. They educate consumers about their rights and options, conduct research on consumer issues, and advocate for stronger consumer protection laws and regulations. These organizations often provide resources, such as complaint resolution services, and work to hold businesses accountable for unethical or harmful practices
What is a Credit Union?
A credit score indicates...
A number assigned to a person that indicates to lenders their capacity to repay a loan
Preferred Provider Organization Plans (PPO) vs. Health Maintenance Organizations (HMO)
PPO:
A group of healthcare providers that work together to provide health care services.
Patients choose doctors/providers from approved lists
Usually has a co-pay – an amount you must pay each time you use a medical service ($15-$30)
HPO:
A managed care group plan that has prepaid medical care.
Have their own facilities (clinics and hospitals)
Must choose doctors on the HMO staff
Price to Earnings (P/E) ratio
This is the ratio for valuing a company that measures its current share price relative to its earnings per share (EPS). P/E ratios are used by investors and analysts to determine the relative value of a company's shares in a comparison with other companies . It can also be used to compare a company against its own historical record or to compare aggregate markets against one another or over time.
How can consumers protect themselves from identity theft and fraud?
Consumers can take several steps to protect themselves from identity theft and fraud. These include regularly monitoring their financial accounts, using strong and unique passwords, being cautious when sharing personal information online, avoiding suspicious emails or phone calls, shredding sensitive documents, and using secure payment methods. Staying informed about the latest scams and employing good security practices can help consumers minimize the risk of becoming victims of identity theft and fraud.