Budgeting
You put a portion of your paycheck into your savings, retirement, emergency or other goal-based savings accounts before you do anything else with it.
Pay Yourself First
The purpose of taxes
Funds the government
Excellent Credit Score Numbers
800-850
The max amount your insurance policy will reimburse you for a covered loss
Limits
Person that owns shares (pieces) of a company
Shareholder
50% of your net income should go to your needs, 30% should go to your wants, 20% should go to savings or paying debt
50/30/20 Budget
Declares withholdings from each paycheck for tax purposes
W-4
Financial aid you don’t have to pay back (3 types)
Scholarships, Grants, and Work study
FSA's can be defined as
Flexible spending accounts
A loan from a company or government that earns interest over time
Bond
Standard expenses that happen every month, on a certain day, and for a certain amount.
Fixed Expenses
An amount that can be subtracted from a person’s taxable income
Deductions
Any lending practice where the borrower is taken advantage of by the lender
Predatory Lending
The 3 types of insurance
Renters, Auto, and Health
Money an investor makes when they sell an investment for a higher price than they paid
Capital Gains
Every single dollar of your income is assigned to a specific expense, leaving you with a balance of $0
Zero-Based Budget
Someone you financially support who can be “claimed” on taxes to reduce taxable income
Capacity, Collateral, Covenants, and Character are the 4 parts of it
Credit
The amount you’re charged every month in your insurance policy
Premium
Allow investors to buy many stocks or bonds in certain market segments at once
ETFs
Expenses or purchases that happen throughout the month. They are not as predictable as fixed expenses regarding their dates or amounts, but they reliably happen
Day-to-Day Expenses
You will receive one from every employer from the tax year – Shows how much you earned & paid in taxes for the year
W-2
A type of loan that requires the borrower to make scheduled, periodic payments that are applied to both the principal and interest
Amortized Loans
Texting while driving ticket increases auto insurance premiums by
$346
A plan with benefits that helps workers invest for retirement
401(k)