Paychecks
Total amount of an employee's earnings before taxes are taken out
What is Gross income?
A progressive tax on total annual earnings
What is an income tax?
Highest FICO credit score
What is 850?
Non-profit, owned by its members, and typically offers lower interest rates on loans
What is a credit union?
Name of the budgeting method that allocates 50% of income to needs, 30% to wants, and 20% to savings
50-30-20 method
An informal name for net income/net pay
What is take-home pay
A tax collected at the time of sale which varies by state
What is a sales tax?
The number of large credit bureaus that report credit scores
What is 3?
Banks charge this on loans to earn money
What is interest?
Budgeting system that using cash only separated into envelopes
What is the envelope method?
A form filled out by the employee when starting a new job that determines the amount of tax withheld from a paycheck
What is a W4?
An excise tax on specific items like alcohol & tobacco products that is intended to reduce consumption
What is a sin tax?
Credit card loans that are not backed by assets
What is an unsecure loan?
Someone who gets a loan from a bank or credit union
What is a borrower?
Type of budget that gives every dollar a specific job/purpose
What is the zero-balance budget?
The Federal Insurance Contributions Act (or FICA) requires employers withhold these 2 payroll taxes from an employee's wages
What is Social Security and Medicare?
A tax on paid annually on your home and land that pays for schools and local public goods
What is a property tax?
Lowest amount of money that can be paid on a credit card each billing cycle to keep it in good standing
What is a minimum payment?
Term used to describe the ease of turning an asset into cash
What is liquidity?
This cash reserve is set aside for unexpected expenses like a car repair or medical bill
What is an emergency fund?
This employer-paid payroll tax funds a program that provides temporary compensation to eligible workers who have lost their jobs
What is Unemployment?
A tax paid on the profits realized from the sale of an asset, such as a home or stocks
What is a capital gains tax?
The amount paid to avoid being charged interest on a credit card
What is entire balance?
Term used to describe banks making a profit by charging a higher interest rate on loans and paying a lower interest rate on deposits
What is spread?
Money set aside each month for a specific, expected future expense, like a vacation or new car
What is a sinking fund?