Taxes
What is the Maryland state tax?
6%
What does it mean to be an Informed Consumer?
What is gross pay?
Total of money earned before deductions
What is a contract?
Defined as a legally enforceable promise between two parties that can be oral or written.
What's the difference between a debit and credit card?
Debit cards allow you to spend money from funds.
While Credit cards allow you to borrow money from the card issuer.
What is a tax?
A mandatory payment to a government made by a person, property, or business to fund some public purpose.
What's the definition of consumerism?
The protection of the rights and interests of the general pool of buyers.
Also, an obsession with buying material goods or items.
What is net pay?
The amount of money left after deductions
Why do we need contracts?
Without them, it would be very hard for our economy and our lives to operate. We need some agreement between parties so that everyone can get what they want (usually money for a service).
What is a Debit Card?
A plastic card issued by a financial institution that electronically move money from one party's checking account into another's account.
What are the three major types of taxes?
Taxes on what you earn - ex. income tax
Taxes on what you buy - ex. sales tax
Taxes on what you own - ex. property tax
What is an impulse buyer?
What is a pay period?
When someone is paid
ex. weekly, bi-weekly, monthly, etc.
What are a couple examples of a contract?
Buying food from a restaurant? Yes!
Tuition agreement for college? Yes!
Paying a mechanic to fix your car? Yes!
Subscribing to a cable/Internet package? Yes!
What is a Credit Card?
A plastic card issued by a financial institution (such as a bank) that allows one to make a purchase "on credit" - by borrowing funds from that institution, to be paid back at a later date (when or before the bill is due!)
What is Horizontal Equity?
"Equals should be taxed equally."
Meaning essentially everyone is taxed the same percentage.
Why can't consumerism stop in this day of age?
The economy is structured on buy, use, buy more. Instead it should be structured on buy, use, and reuse.
How many types of withholding tax are there and what is it?
There's 2, Federal and State
Percentage taken from someone's paycheck to fund State/Federal(Interchangeable) government agencies, depending on gross pay.
No! Legally binding contracts can be oral agreements, unsigned agreements, and even voicemail and text message exchanges!
True or False, Debit Cards can build credit.
False! Only Credit Cards can build Credit
What is Taxes Equity?
"Unequals should be taxed unequally."
Meaning if someone makes more money they get taxed the same percent but that means they pay more.
What are some ways to be an Informed Consumer?
Have strategies when you're shopping
ex. knowing what you're looking for, compare qualities of products, etc.
What is FICA and what does it do?
The Federal Insurance Contribution Act.
It's a tax that funds federal programs Social Security and Medicare.
What kind of contracts must be in writing?
Contracts...
That govern the purchase or transfer of property/land.
Relating to activities that extend beyond one year.
Involving the sale of goods above $500.
What exactly is "credit"?
Credit is when we borrow funds to purchase goods and services, with the expectation that we will pay back later!