Money Mindset
Spending 50% on needs, 30% on wants, and 20% on savings.
What is the 50/30/20 budgeting rule?
The reimbursement that the government gives you when you paid more in taxes that you actually owed. For example: if taxes were pulled from your paycheck but your annual income wasn't high enough to actually need to pay taxes (<$13,850).
What is a tax refund?
When a portion of your paycheck goes towards retirement. Often employers will also match that contribution for a tax advantage.
What is a 401K plan?
The percentage that a lender charges the borrower on top of the principal owed amount.
What is an interest rate?
What is a premium?
The belief that one doesn't deserve
money and others think money is
bad. Money can be a source of
fear, anxiety, or disgust.
What is Money Avoidance?
A specific portion of your income that is taxed at a specific rate.
What is a tax bracket?
An investment account that allows you to buy or sell stocks.
What is a brokerage account?
When the value of an asset depletes over time?
What is depreciating?
The amount you pay for a bill on your own (not covered by insurance). Sometimes a lower premium can result in a higher amount that you have to pay for a bill.
What is a deductible?
Belief that more money will solve
all of life’s problems and bring
happiness. Associated with
overspending, gambling, or
compulsive buying.
What is Money Worship?
The form you fill out to claim how much federal income tax your employer should withhold from your paychecks.
What is a W-4 form?
A 401K plan in which contributions are pulled from your paycheck into a retirements savings account AFTER taxes. This kind of 401K is beneficial if you're in a higher tax bracket and can afford to have your retirement contributions taxed/not have an immediate tax break.
What is a ROTH 401K?
A number calculated on your FAFSA that determines how much need a student has. A lower amount means higher needs.
What is the Student Aid Index (SAI)?
A formal request to your insurance company to compensate for a loss (i.e. requesting $40k to cover the stuff lost during a fire).
What is a claim?
The social standing or class of an individual group; a combination of education, income, and occupation.
What is socioeconomic status?
This government organization insures deposits up to
$250,000, keeping clients' money safe.
What is the Federal Deposit Insurance Corporation (FDIC)?
A tax credit for educational expenses; worth up to $2,500 per student. 40% of the credit (or $1000) is refundable.
What is the American Opportunity Tax Credit?
A cash amount you pay upfront when taking out a mortgage on a house. Sometimes you can reduce the interest rate on your mortgage by paying more in cash upfront than the seller asked for.
What is a downpayment?
A type of insurance in which your monthly premiums are saved for after you die. The amount you paid in premiums goes to your beneficiaries (tax-free) to cover funeral costs, debts, or lost income.
What is life insurance?
An economic system based on competition and individualism; private businesses own the means of production instead of the state.
What is free-market capitialism?
What is the Consumer Price Index (CPI)?
An index that tracks the performance of 500 of the largest publicly traded companies in the U.S.
Determining the amount of money you pay back on a loan (like student loans) based on your discretionary income (your income after taxes and other expenses).
What is an income-based repayement plan?
A type of insurance that replaces a portion of your income if you become sick or injured and cannot work. This type of insurance is often offered as a workplace benefit and is covered by employers.
What is long-term disability?