Unit 1
W-4 Form who, what, and when?
Employer, tax document, before a new job
Liabilities
Current liabilities-debt you will pay off in the near future (less than a year.)
Long term liabilities-debt to be paid over a year.
discretionary income
Revolving Credit
Credit provided up to a specified maximum amount based on income and credit history; interest is charged each month on the remaining balance.
Mortgage
an agreement between you and a lender that gives the lender the right to take your property
w-2 form who, what, when?
employer, Annual wages and taxes in paychecks, Before January 31
Net Worth
Net worth=Value of Total Assets-Value of Total Liabilities
money market account
A money market account or money market deposit account is a deposit account that pays interest based on current interest rates in the money markets.
Improving Credit Score
Low credit score normally missed payment or carrying excessive amount of debt
Improve by catching up on late payments
Making at least minimum payments on time
Reduce debt
what is a tenant
renting a property
1040 Form who, what, when
Who? Tax payers
What? File income tax
When? Annual
Personal Balance Sheet
A summary of your assets (what you own), your liabilities (what your owe) and your net worth (assets-liabilities)
diversification
the process of allocating capital in a way that reduces the exposure to any one particular asset or risk.
Response to Identity Theft
Contact the police
Contact the FTC
Contact Credit Reporting Companies
Contact creditors
Contact others/bank
what's the 3 car insurances
liability insurance, collision coverage and comprehensive insurance.
Opportunity Cost
What you give up when making a decision
FDIC covers? 3 examples
Checking accounts
Negotiable Order of Withdrawal (NOW) accounts
Savings accounts
Money Market Deposit Accounts (MMDAs)
Time deposits such as certificates of deposit (CDs)
Cashier's checks, money orders, and other official items issued by a bank
compound interest
Compound interest = total amount of principal and interest in future (or future value) minus principal amount at present (or present value). = [P (1 + i)n] – P.
Correcting Credit Report Mistakes
Send a letter to credit bureau that issued the credit report
Send it by certified mail
Identify the specific information that you believe is incorrect
Required to investigate within 30 days
Is it mandatory to have auto insurance in wisconsin
Dependent definition with example
dependant is a person who relies on another as a primary source of income. A child.
Financial Institutions
Financial institutions encompass a broad range of business operations within the financial services sector including banks, trust companies, insurance companies, brokerage firms, and investment dealers. Financial institutions can vary by size, scope, and geography.
Individual Retirement Account (IRA)
It is a trust that holds investment assets purchased with a taxpayer's earned income for the taxpayer's eventual benefit in old age.
Credit Bureaus
Credit reports are reports by credit bureaus to document a person’s credit pay
Equifax
Experian
TransUnion
Who usually gets life insurance
Married people or people who have children or uncles/ aunts.