Credit & Debt
What number measures your creditworthiness?
Credit
What form tells your employer how much tax to withhold from your paycheck?
W-4
What is the initial payment made when purchasing a home, typically expressed as a percentage of the home's price?
Down Payment
What is the total amount of money you earn before any taxes or deductions?
Gross Pay
What term refers to the value of your car after it has been used, often used to determine trade-in value?
Depreciation
What is the maximum amount you can borrow on a credit card called?
Credit Limit
What is the difference between a standard deduction and an itemized deduction?
Standard deduction is a set amount for a tax deduction, itemized means you are adding up eligible deductions (paid interest, moving expenses)
Why is putting at least 20% down for a mortgage so beneficial?
Avoid paying PMI
What payroll system allows your employer to electronically deposit your paycheck into your bank account?
Direct Deposit
What is the type of insurance coverage that pays for damages to YOUR car regardless of fault?
Collision Coverage
What does APR stand for?
Annual Percentage Rate
What form does your employer send you to report your annual income and the taxes withheld?
W-2
What is the term for additional costs paid at closing, such as loan fees, title insurance, and appraisal fees?
Closing Costs
My gross income is $50,000 and I pay $1,500 per year on health insurance premiums. How much will I contribute to FICA taxes throughout the year?
$3,710.25
If you are an insured driver and get in an accident, what is the money you pay towards damages before insurance "kicks-in" called?
Deductable
Name one consequence of making only the minimum payment on your credit card balance.
Pay more interest!
What is the name of the primary form used by individuals to file their federal income tax return?
1040
What is the difference between a fixed and variable interest rate?
Fixed rate will stay the same throughout the loan term, variable rate moves with the Federal Reserve Rate.
Name 5 states that do not have an income tax.
Alaska, Florida, Texas, Wyoming, New Hampshire, Nevada, Tennessee, South Dakota, Washington
What is a reason why leasing a car may not be wise?
Don't build any equity in the asset.
What type of loan is backed by an asset, such as a mortgage or auto loan?
Secured Loan
What is a tax credit and how is it different from a tax deduction?
Tax credits are subtracted from the tax that you owe, while deductions come off your taxable income.
What is the term for ownership in an asset (represented as a percent or $ value)
Equity
How can contributing to a 401k or similar retirement account reduce your taxable income?
Contributions are a tax deduction for federal income taxes
Considering split limits. What does each number represent 100/300/50?
Refers to liability coverage, 100k for a single persons injuries, 300k for all persons injuries, 50k in property damage.