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33 Cards in this Set
- Front
- Back
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Define Bond |
Basically a loan that in a future day you will pay that loan back A debt investment in which an investor loans money to an entity and that entity borrows the funds for a defined period of time and then pays back that loan over a period of time with interest |
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Why are there bonds? |
Companies issue bonds so that they don't have to pay money back to a bank they pay it back to an investor |
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2 Ways americans invest in |
1. The most common way is to get a non qualified account and you only put so much money in it a month and invest in whatever you want right then/now 2. have an account you can access when you're 19 and then you can invest with that money |
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The Goal of investing |
1. Generate Growth - Buy an asset that grows in value and then sell it for profit 2. Generate Cash Flow - Buy and asset that pays you a check
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What do the rich invest in? |
They invest in buisnesses' that will make them more money than they put into it and the exess money is Free Cash Flow |
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what is 1 other way to invest |
Invest in an idea |
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2 ways to save for an investment |
1. As a student save 2/3 of the money you make
2. As an adult save 1/3 of your income |
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Define Mailbox Check |
Example: Stuff doesn't pay a mailbox check If you had an apartment complex, furniture isn't an asset Assets pay a mailbox check |
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Define Loans |
money that is borrowed that will be payed back by interest |
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Define Cash Flow |
the total amount of money being transferred into a buisness, exspecially as affecting liquidity |
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Define Sweat Equidy |
an interest or increased value in a property earned from labor toward upkeep or restoration If something needed to be fixed at an apartment complex you own would you pay someone to fix ir or would you fix it. If you fixed it, it would be cheaper and then you loose less money and make more |
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Define Checking Account |
a checking account is money you put into an account and you use it to pay bills and you have that account to take out money when you NEED it |
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Define Savings Account |
a savings account is money you put into an account to save up to use for your own purpose (for what you've been saving for) |
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Define Checks |
a written order directing the bank to pay money as instructed/A financial record of what money you have spent (using your checks) |
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Define FDI Insured |
If the stock market crashes you're insured $250,000 at the bank |
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How much money should you have in your savings account |
enough money to survive for 6 months incase something were to happen/like you lost your job |
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How much does it cost to open a checking account |
its free |
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How many times can you take money out of your account a month for free? |
3 times and after that you have to pay |
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What is the difference between a debit and a credit card? |
If you use a debit card the money you use will be directly taken out of your account and if you use a credit card the money you spend will build up and you will get a bill at the end of the month. The thing is...you have no limit on your credit card so if you get your bill and you don't have enough money you're in trouble |
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How much interest do they charge you at the end of the month if you can't pay your bill |
9.99% |
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Different Taxes... |
State Taxes Federal Taxes Income Taxes etc. |
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Why do you get taxed |
we get taxed because the government uses that money to provide us with different goods and services |
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Tips for your resume |
- only put experiences that pertain the the job - make it different/stand out/colors/fonts/etc. - make it 1 page - use bullets - make it interesting |
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Tips for cover letter |
- 1 page - tell a story/joke/experience - tell why you believe you are fit for the job/persuaide them - make it fun - Have it correspond with the resume |
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Iterview Tips |
- Shake hands - eye contact - dress appropriate - be prepared to answer certain questions - talk so the interviewer can hear |
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Budget |
- Organize it by month and in categories for your expenses - tweak it once you figure out the prices for certain things - keep track of what you're spending - Spread your money out - don't go over |
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What is the federal reserve |
The federal reserve prints all of our money. They are a central banking system. The fed was created so the nation could have amore stable financial system.the fed loans the bank money |
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Why do people trust the U.S Dollar |
America is a hige world power and we kind of lied our way to get where we are. Americans travel alot so the U.S dollar is accepted in many places (pretty much everywhere) it is worth more to people where it is not their national currencey (not a true answer/thinker) |
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Define Gross Pay |
Amount of money you make in a year before taxes |
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Define Net pay |
The ammount of money you have after taxs and dedcutions |
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What is the "formula" to use to now your net pay |
Gross pay - Deductions & Taxes = Net Pay |
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State income Tax (does everyone have them?)
Federal Taxes (does everyone pay them) |
No not every state Florida doesn :)
Yes everyone does |
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What is a W4 Form |
it is what you fill out to calculate your amount of dedcutions It asks if you are - Single/Married - Head of Household - Have Children
You have to fill out a W4 form once you get a job Once you have a real job and are making money you have to start paying taxes
- Are dependant or independant - If someone is dependant to you or vise versa - etc. |
