Taxes
What are 2 things the Federal Government spends money on that you benefit from?
Answers will vary, and whatever Mrs. Mullikin says is acceptable GOES!
What is the mathematical formula that you would use to describe the financial activity on a bank statement?
a. Ending balance=Previous Balance + Deposits + Withdrawals + Fees
b. Ending balance=Previous Balance - Deposits + Withdrawals - Fees
c. Ending balance=Previous Balance + Deposits - Withdrawals - Fees
d. Ending balance=Previous Balance - Deposits - Withdrawals + Fees
c. Ending balance=Previous Balance + Deposits - Withdrawals - Fees
What is the relationship between a credit score and credit report?
a. There is no relationship
b. The information in your credit report is used to calculate your credit score
c. Credit scores are updated annually, while your credit report is updated weekly
d. Credit scores are less important than your credit report
b. The information in your credit report is used to calculate your credit score
Explain why it is important to start saving for retirement early.
Which of the following individuals is the wealthiest?
a. Maria owns a $15,000 car and owes $45,000 in student loan debt.
b. Keith owns a $500,000 home and has a $460,000 mortgage.
c. Elyse owns a $25,000 car that is entirely paid off but has $10,000 in credit card debt.
d. Karina owns a $50,000 car and has $5000 remaining on her car loan.
d. Karina owns a $50,000 car and has $5000 remaining on her car loan.
When is the deadline to file taxes without an extension?
April 15th
You deposit $200 into a CD with an interest rate of 1% for 3 years. How much simple interest will you earn after three years?
a. $1
b. $5
c. $6
d. $25
c. $6
Which of the following could hurt your credit score?
a. Paying your bills on time
b. Paying down balances on your credit cards
c. Decreasing your credit card utilization
d. Applying for multiple credit cards in a short period of time (e.g., a week)
d. Applying for multiple credit cards in a short period of time (e.g., a week)
Give me 2 reasons having a bank account is beneficial.
Many answers. If Mrs. Mullikin agrees, you are correct!
Give me 3 important factors to consider why choosing between different savings accounts.
Interest rates, bank location, Minimum deposit amount, fees, etc.
What tax form am I? I am received in January. There is one of me for every employer that you worked for in the previous year. I have information on how much you earned and how much you paid in taxes for the previous calendar year.
a. 1040
b. I-9
c. W-2
d. W-4
c. W-2
What is a bond?
A loan made by you to the Government. They pay you back with interest.
What is the difference between a fixed and ARM rate?
Identify 2 different forms of income that are taxable.
Wages, salaries, tips, bonuses, commission
What is the difference between installment loans and lines of credit?
Installment loans are 1 lump sum taken out. EX. car.
Lines of credit are like credit cards. You can continuously borrow and pay back.
What are 2 reasons someone might choose a tax preparer rather than doing it themselves?
Getting married/divorced
Too complicated like owning a business
Less time-consuming
Don't understand taxes
Want to ensure accuracy
Other answers Mrs. Mullikin might accept
Answers will vary. Whatever Mrs. Mullikin says is acceptable GOES!
What is the difference between a secured and unsecured loan?
Secured has collateral and unsecured does not.
Why would an overdraft be considered a loan?
It is money the bank is lending to you that you do not have in your account.
Describe loan amortization.
Loan amortization is the process of paying off a debt over time with regular, fixed payments that cover both the principal (the original loan amount) and interest, with an amortization schedule showing how each payment's allocation shifts from mostly interest at the start to mostly principal at the end, fully clearing the debt by the loan's term.
How does the number of allowances you claim on your W4 impact how much is withheld for taxes?
The higher the allowances, the less comes out of your check for taxes.
What is the penalty for not using your 529 college account for education expenses?
10% fee
What is the principal, interest and terms of a loan?
Principal: Original amount borrowed
Interest: Fee charged for having the loan
Terms: The duration of the loan.
List a pro and a con of a retirement account.
Pro: Money when you retire, good rate of return.
Con: Cannot use the money until you retire or you pay a penalty.
Name one advantage of a fixed rate loan and one advantage of an ARM loan.
Fixed rate: Predictable payments-better for budgets, don't have to worry about rate increasing.
ARM: Better for short term loans and interest starts out lower.