Vocab
Money that is earned from work, investments, business, etc.
income
Which statement accurately describes how the 50/20/30 Rule would break down your take-home pay?
a) 50% on flexible expenses, 20% on financial goals, and 30% on living expenses and essentials
b) 50% on financial goals, 20% on living expenses and essentials, and 30% on flexible expenses
c) 50% on living expenses and essentials, 20% on financial goals, and 30% on flexible spending
d) 50% on financial goals, 20% on flexible expenses, and 30% on living expenses and essentials
c) 50% on living expenses and essentials, 20% on financial goals, and 30% on flexible spending
Which of the following is NOT a common feature of a financial institution?
a) Direct Deposit
b) Paper Checks
c) Access to investment advice
d) Checking and Savings Accounts
c) Access to investment advice
List 3 responsibilities of the tenant
Paying rent on time. • Using the rental for the purpose stated in the lease. • Taking reasonable care of the property. • Notifying the landlord if any major repairs are needed. • Giving notice if leaving at the end of the lease. • Giving notice if leaving before lease is up and paying rent for balance of lease if landlord can’t find new tenants. • Paying for any damage to the walls, floors, and furniture. • Not making alterations that the landlord must fix later. • Giving landlord a new set of keys if you change the locks. • Paying all of rent if roommates move out and you stay.
is the money you have left over after you subtract your income taxes from your income.
disposable income
An amount of money paid to an employee at a specific rate per hour worked
wage
Which of the following statements about savings accounts is FALSE?
a) Savings accounts don't usually pay interest on the money you deposit
b) Savings accounts limit the number of withdrawals that can be made each month
c) Savings accounts may require you to maintain a minimum balance to avoid paying a fee.
d) Savings accounts are best used to store money for longer-term goals.
a) Savings accounts don't usually pay interest on the money you deposit
Which of the following financial institutions typically have the highest fees?
a) Check cashing and payday loan companies
b) Credit Unions
c) Brick-and-mortar banks
d) Internet Banks
a) Check cashing and payday loan companies
List 2 advantages and 2 disadvantages of leasing a car
no ownership, smaller down payment, cheaper payments, no credit, most repairs are covered, like to trade in
Total earnings before any deductions are taken
Gross Income
An amount of money paid to an employee at a specific rate per hour worked
salary
Which savings account will earn you the least money?
a) One that compounds interest daily.
b) One that earns simple interest monthly.
c) One that earns simple interest daily.
d) One that compounds interest monthly.
b) One that earns simple interest monthly.
Which of the following is a possible tax or deduction that they may show up on your paycheck?
a) Federal income tax
b) Contributions to retirement savings
c) FICA
d) All of the above
d) All of the above
What typically happens if a cardholder makes a late credit card payment?
late payment fee and APR will apply
Total earnings after payroll taxes and other deductions; also called take-home pay
Net Income
Products, services, or bills you are responsible for paying
expenses
What is the purpose of the W-4 form?
a) To file your tax return.
b) To determine how much your gross pay should be
c) To inform your employer of how much federal income tax to withhold from your paychecks.
d) To avoid paying income taxes on your paychecks.
c) To inform your employer of how much federal income tax to withhold from your paychecks.
The gig economy offers ________.
a) Flexible, short-term, and independent jobs.
b) the total availability of employment and labor in the economy
c) An economic system in which assets or services are shared between individuals
d) The migration of workers to high-tech jobs.
a) Flexible, short-term, and independent jobs.
What are 2 of the main sections on a Schumer Box?
Interest Rates and Interest Charges
refundable amount paid in advance to protect the owner against damage or non-payment
security deposit
Cost that can be expected at regular intervals and that remains the same amount (e.g., monthly rent payment)
fixed expenses
When filing an insurance claim, the policyholder must pay a ________________, which is the
amount you owe before insurance will cover the rest of the bill.
a) deductible
b) premium
c) contract fee
d) commission
a) deductible
Your employer sends you a _______ form that tells you how much you've made and how much
you've paid in taxes in the last year.
a) 1040
b) W-2
c) W-4
d) W-9
b) W-2
How can Unit Pricing help you save on groceries?
By calculating unit price, you are able to strip away the influence of brands and strangely sized items and focus solely on the price of similar products.
to take possession of, live in it, and pay a monthly agreed amoun
rent