Bank Accounts
Which has the higher interest rate? Checking Account or Savings Account?
What is Savings Account
If you work 49 hours in a week, how many hours of overtime did you work?
9 hours
What is a budget?
A set plan on how to spend your money
What is sales tax?
A tax you pay on all goods or services you purchase
What are the 3 parts of the 50/30/20 Rule?
50% Needs
30% Wants
20% Savings
What is the biggest difference between Banks and Credit Unions?
Banks are for-profit while Credit Unions are non-profit
Which of the following is not an extra benefit you might get from an employer?
1) Childcare
2) Bonus
3) Cardinal Tickets
4) Personal Butler
4) Personal Butler
Name an unexpected expense
What is property tax?
a tax based on the amount of land you own AND the size of your home
What is a deduction?
An amount taken out of your paycheck by an employer
What is the difference between Compound and Simple Interest?
You continue to earn money on the interest you make with compound interest, while you only make money off the principle with simple interest
What are two of the three types of income taxes taken out of your paycheck?
Federal, State, and Local
Who should you pay first with your paycheck?
YOURSELF!!!
What is a tax?
A fee you pay to be part of society
What is it called when you lose out on something because you made another choice?
What does the term "CD" stand for?
Certificate of Deposit
Name 3 Paycheck Deductions
*Mr. G will confirm the answer*
How much money should your emergency fund have in it?
3-6 months of living expenses
What are the two types of taxes that are taken out of your paycheck that are not income tax?
Social Security Tax and Medicare Tax
Costs
What are the two institutions that insure bank and credit union members up to $250,000?
FDIC & NCUA
What are the 3 types of compensation you can be paid with?
Salary, hourly, commission
Why is it acceptable to take bigger risks with long term savings (when compared to short term savings) when the things you're saving for long term are more important (example: college, house, retirement)?
Because you have more time to rebound with long term investments than you do short term investments
Name 2 types of Excise Taxes
Sin, Entertainment, Fuel, Luxury, Gift, Travel
What percent of the brain's energy is put to making decisions each day?
75%