Personal Finance

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Personal Finance
2012-09-09 22:58:30
personal finance wages salary taxes deductions

Work Unit Study Guide for Personal Finance
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  1. per hour rate
  2. set amount per year regardless of  hours worked
    [ie. NO overtime (OT) pay for overtime(OT) hours]
  3. gross pay - deductions =
    net pay
  4. IRS
    Internal Revenue Service
  5. What is the job of the IRS?
    Federal tax collection
  6. tax form filled out when you start a job showing the number of dependants
  7. What is the amount your employer takes out of your check?
  8. What is the withholding amount your employer deducts based on?
    number of dependants
  9. What is the W2?
    Shows annual income and taxes with held. Sent in January to help you fill out your tax forms due by April 15th.
  10. What is the name of the simplest tax form for filing taxes?
  11. Under what circumstances can one file the 1040EZ?
    • part-time jobs
    • no dependants
  12. conditions that allow you to exempt some income from taxation are called...
  13. What is the original amount of $ saved, invested or borrowed called?
  14. What is the percent (%) of principal to be earned called?
    interest rate
  15. What does APY stand for?
    • Annual
    • Percentage
    • Yield
  16. What does APY (Annual Percentage Yield) mean?
    money growth rate
  17. If you deposit $1,000 and earn $30 after two years which amount is the principal and which amount is the APY/interest/yield?
    • principal=$1,000
    • APY=$30
  18. What is the term for the ease with which an asset can be turned into cash without loss?
  19. High liquidity = higher/lower APY
    High liquidity = lower APY
  20. What is the name of the date on which an investment is finished or paid out?
  21. What does  CD stand for?
    1 year Certificate of Deposit
  22. What is a CD?
    A Certificate of Deposit where the bank pays the original amount (principal) plus interest (APY)
  23. Longer time for Maturity = higher/lower APY
  24. longer/shorter Maturity = higher APY
  25. What kind of savings option has the highes liquidity?
    a savings account
  26. What kind of savings option usually has the lowest interest rate?
    savings account
  27. What kind of savings option has the highest liquidity with the lowest interset rate?
    savings account
  28. What kind of account has a high balance requirement to avoid fees?
    money market account
  29. What is the minimun balance requirement for a Money Market Account?
  30. What kind of interest rate does a Money Market Account have?
  31. What does variable interest rate mean?
    That the interest rate changes
  32. Money Market Account has ______liquidity and _____interest rate
    • high liquidity
    • variable interest rate
  33. What kind of savings option has a penalty for early withdrawal (before the maturity date) as well as low liquidity?
  34. bigger CD = higher/lower APY
  35. What kind of savings option gaves you a higher APY for a larger principal?