Chapter 10-
True or False- Getting a big tax refund is not necessarily a good thing.
True
Money owed to another person or company
debt
True or False- Detailed categories on your budget will help you make better spending decisions
True
a person or organization that uses a product or service
Consumer
an arrangement in which an individual will receive financial protection or reimbursement of losses from an insurer
Insurance
a fixed annual amount earned by an employee, typically paid weekly, biweekly, or monthly
Salary
True or False-Studies show that young Americans—those under age 36—are carrying over $26,000 in debt
True
Zero-based budget definition
when your income minus your expenses equals zero
The additional cost a lender charges for borrowing their money
Interest
the amount of money you will pay out of pocket before the insurance company will make a payment
Deductible
When you make ____money, you will pay ____in taxes.
Personal finance is 20%___ and 80% ____
Head knowledge and behavior
How often you should create a budget
monthly
The initial amount of money invested or borrowed
Principal
3 ways to pay reduced fees for car insurance
The tax on the purchase of goods or services is called _____________
Consumption Tax
The net worth calculation
expense that occurs at various times throughout the year and tends to be in large, lump sums
Intermittent Expense
The amount of time after the premium is due in which a policyholder can make a premium payment without suffering a lapse (break) in coverage
Grace Period
3 things not usually covered by homeowner's insurance
sewer backups
earthquakes
flooding
mold
pest control
The biggest tax filing day/deadline
April 15th
The five foundations of personal finance in order
$500 Emergency Fund, cash for college, cash for car, get out of debt, build wealth and give
Going to the movies represents these two types of expenses
Discretionary and Variable
a tax that‘s imposed on a property owner’s right to transfer the property to others after his or her death
Estate tax
A person who relies on someone for financial support
Dependent