Money & Income
The exchange of goods without the use of money
Barter
What type of bank is owned by its members?
Credit Union
What is APR?
Annual Percentage Rate (interest)
What type of asset can you buy that makes you a part owner of a company?
Stock
When is it best to start saving and investing and why?
The earlier the better. Compound interest will help investments grow. Creates financial security.
Fiat
What is the most liquid bank account type?
Checking account
What number tells lenders how credit worthy a person is? What is the range for numbers?
Credit Score (FICO score); 300-850
What is it called when a company shares part of its profits with its shareholders (people who own stock)?
Dividend
What should you have to monitor and plan for your spending and saving on a monthly basis?
Budget
What is the equation for Net Pay?
Gross Pay - Deductions = Net Pay
What does PIN stand for, and how/where do you use it?
Personal Identification Number; ATMs and making debit card purchases
How are your credit score and your interest rate related?
Inversely; A high credit score means a low interest rate, and vice versa
What is a retirement plan offered through your employer that also lowers your taxable income?
401k or 403b
Why is your money worth more today than it is tomorrow?
Inflation
What are mandatory deductions from your paycheck?
Federal and state taxes, and FICA (Social Security & Medicare)
What is the difference between a credit card and debit card?
Credit card is a loan, debit card the $ comes directly from your account.
What are the 3 major credit reporting agencies?
Transunion, Equifax, Experian
What is it called when you have different types of assets for your investments?
Diversification
What is the equation for Net Worth?
Net Worth = Assets - Liabilities
What is the difference between W4 and W2 tax forms?
W4 - tells your employer how much to withhold from your pay for taxes
W2 - employer gives to you that - how much you've been paid all year and already paid in taxes
What two federal agencies insure your bank deposits up to $250,000 per account?
FDIC and NCUA
What is the difference between a secured and unsecured loan?
Secured loan is backed by collateral, and unsecured is not.
What is the difference between a traditional and Roth IRA (and define IRA)?
Individual retirement account. Roth IRA you pay taxes now, traditional IRA you pay taxes later when you take it out for retirement.
What is a SMART goal? (Define the acronym)
Specific, Measurable, Actionable, Realistic, and Time frame.