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65 Cards in this Set
- Front
- Back
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Incentive Plan
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paid for better performance on the job
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cafeteria plan
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Employees choose the benefit options that are best for them
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Inflation
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overall rise in prices
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Things that can impact income?
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*live
*parenthood *education *taking a break *career |
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Education vs. income
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The more educated you are, the more money you will make over your lifetime
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What should you look at when deciding between jobs?
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Salary and benefits
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Inflation vs. purchasing power
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impacts availability of goods and services, cost, and value of money
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Responsibility of Taxpayer
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file a w-4
pay what you owe file on time report income correctly |
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What is a W-2?
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reports income
sent to emplyees in January used to file taxes FAFSA |
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What is a w-4?
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filed by employee when starting a job
can be changed as needed reports exemptions used to calculate how much tax is owed |
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what is a 1099?
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reports other income not covered by other forms
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what is a 1040?
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form used to file taxes if taxpayer has any deductions
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what is a 1040-EZ
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form used if the taxpayer has no deductions to claim
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budget
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plan for how to use money for wants and needs
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Net worth
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Assets-liabilities=net worth
shows you what you have versus what you owe |
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balancing a checkbook
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Checking you bank statement against your checkbook to make sure all money spent is acounted for
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Short-term Goal
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less than a year
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intermediate goal
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1-5 years
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long-term Goal
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more than 5-years
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Co-payment
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money you pay when you use insurance services
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premium
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money you pay for insurance protection even if you have not used it
monthy |
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Steps to financial planning
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1. current financial situation\
2. financial goals 3. identify your options 4. alternatives 5. financial plan of action 6. review and revise plan |
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Steps to balancing check book
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1. compare
2. are there some deposits missing? 3. Subtract fees 4. add interest |
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Factors that impact car premium
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type of car
age driving record where you live |
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Homeowners
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protects building, liability, personal property, and expenses if something happens
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Liability
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protects if something happens to someone else due to your actions
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health
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medical expenses
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life
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pays for your end of life expenses
term life, whole life, and group life |
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Renters
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similar to homeonners but does not protect the building
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Disability
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pays out if you are unable to work due to a disability
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Comparison shopping
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Looking for the best deal at the best quality, quantity and price
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Credit
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the ability to borrow money in return for a promis of future repayments
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Bankruptcy
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lost property
credit reporting for 10 years |
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annual percentage rate
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the cost of credit on a yearly basis, percentage
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credit score
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100-800
how responsible you have been |
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installment
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equal payments over a period of time to pay off a loan
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balloon
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payments grow
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ling of credit
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max amount you can spend on credit
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equity
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value fo home minus mortgage
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Better buisness bureau
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complaints against local mechants
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Consumer Protection Agency
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makes sure products are safe for consumers
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Food and Drug administration
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makes sure foods and medicines are safe
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Federal Trade Commission
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Inverstigates businesses who may be using illegal business practices
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Three credit reporting agencies
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equifax
transunion experian |
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Risk of check cashing
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high interest
hard to pay back |
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Risk of title loan
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potential loss of property
high interest |
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pawn shop
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loss of property
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Secured loan
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collateral
installment loan |
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Unsecured loan
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granted on credit rating alone
higher interest |
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Certificate of deposit
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higher yield than savings
set interest rate |
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indivitidual reitrement plan
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individual taxpayers
tax advantages |
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annuity
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purchased as a supplement to other income in retirement
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stock
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ownership in a company
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bond
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like a loan to a company or gov.
paid back with interest |
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mutual fund
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group of investments owned by many investors
buy partial ownership of this group |
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diversification
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combination of high and low risk investments
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compound interest
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interest on interest plus principle
money grows faster |
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FDIC
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Federal deposit insurance corporation
commercial banking insure depositis up to $100,000 |
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SEC
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securities and exchange commissions
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IRS
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internal revenue service
oversees taxes |
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the FED
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fed. reserve
oversees the money supply |
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Roth IRA vs. Traditional
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Roth: no taxes upon usage
Traditional: tax-deferred |
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401k vs 403b
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401k: private business
403B: non-profits |
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rule of 72
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shows how to double money saved or invested
72 divided by interest rate= length of time 72 divided by length of time= interest rate |
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Risk vs. return
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higher risk= higher return
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