Unit 1
What is a Budget?
A plan for managing income, spending, and saving during a given period of time.
What is a dependent?
A qualifying child or relative of the taxpayer.
What is Gross Pay?
Money earned before taxes and other payroll deductions.
When should someone start saving for retirement?
As soon as you begin working.
What is a Grace Period?
A set amount of time payment can be delayed without penalty.
What is a loan?
A sum of money provided temporarily on the condition that the amount borrowed be repaid.
What is Job Hopping?
Moving from one job to the next within a short period of time.
What is Net Pay?
Money earned after taxes and other payroll deductions.
What is direct deposit?
When money is directly deposited into your account from another source.
What is Open Credit?
Credit that you can borrow on an ongoing basis.
What is Insurance?
Protection from specified losses in return for a fee.
What are References?
People who can confirm your claims.
What is a Security Deposit?
A returnable sum payable when something is rented, to cover any possible loss or damage.
In what scenario would someone receive an overdraft fee?
When they spend more money than they have in there account.
What is a Debtor?
A person who borrows money from others, and the money borrowed is called debt, which must be repaid.
What is Credit?
The granting of money or something else of value in exchange for a promise of future payment.
What is Networking?
Making connections and building relationships.
What is a Residential Lease?
An agreement whereby the landlord or owner of property contracts to grant.
How do banks make profit?
What is a Credit Score?
A number ranging from 300-850 that represents your creditworthiness to lenders.
True or False: A Trade Off is the value of the next best alternative that you will give up as a result of your plan.
False
True or false: Earned income is the money you earn while working.
True
What is an Emergency Fund?
A source of ready cash in case of an unplanned expense such as a emergency room bill.
What does it mean if a bank is FDIC-insured?
What is Interest?
The amount of money the credit card company will charge you unless you pay off your balance each month.