Money in a paycheck before taxes are taken out
What is Gross Pay?
When interest is earned ontop of interest. Grows on a curve.
What is Compound Interest?
Term for a house loan
What is a Mortgage?
Things necessary for survival
What are Needs?
Land, buildings, and any naturally occuring nature on the property
What is Real Estate?
Unexpected money you receive
What is Windfall Income?
Retirement account for "for-profit" firms
What is a 401k?
% someone owns of a business
What is Equity?
Savings goals that can be reached within 1 year
What are Short-Term Goals?
Retirement account for "not for-profit" firms
What is 403b?
Money in a paycheck after taxes are taken out
What is Net Pay?
What is Rule of 72?
A readily available source of income in case disaster strikes. Typically 3-6 months worth of salary
What is an Emergency Fund?
Things that are not necessary for survival
What are Wants?
The referees of the stock market: They make sure its fair for all traders.
What is the Security and Exchange Commission (SEC)
______ your wages from your paycheck to pay off debts that you owe. Legally, only 25% per paycheck.
What is Garnishing?
Retirement account where you pay taxes on the money going in
What is a Roth IRA?
Any debts you may owe
What are Liabilities?
The option you do not choose when down to 2 choices
What is Opportunity Cost?
Retirement account where you pay taxes on the money coming out
What is Traditional IRA?
6.2% goes to Social Security and 1.45% goes to Medicare
What is FICA Tax
Theory that says your dollar today is worth more than that same dollar is worth next year.
What is Time Value of Money?
When your expenses outweigh your income
What is a Deficit?
Savings goals that can be reached within 1-5 years
What are Intermediary Goals?
Interest rates that can change