chapter 4 apparently

Question 1

salary (+/-)

Answer 1

a set amount of $ per year
+: easier to budget
-: don’t qualify for overtime

Question 2

Wage (+/-)

Answer 2

pays set amount of $ per hour
+: qualify for overtime
-: don’t know how much $ per year

Question 3

income from wealth

Answer 3

Comes from the interest or earnings you get from money invested

Question 4

Factors that influence wealth accumulation

Answer 4

1. Income
2. Interest Rates
3. Taxes

Question 5

municipality

Answer 5

anything smaller than state that taxes (town, city)

Question 6

3 characteristics of investing

Answer 6

1. safety
   Safe: bank, mutual funds
   Risky: stocks
2. liquidity
   Stocks & gold NOT liquid
3. Rate of Return
   Good ones beat rate of inflation (5-7%)

Question 7

how many months in an emergency savings account

Answer 7

3-12 months

Question 8

save this much of income/paycheck for retirement

Answer 8

15-20%

Question 9

Pros and Cons of Banks and credit unions

Answer 9

Pro: very liquid and safe $
Con: rate of return is low

Question 10

what saving should go into bank and credit union

Answer 10

emergency savings

Question 11

Bank definitino

Answer 11

operate for profit

Question 12

credit union definition

Answer 12

owned by bank members

Question 13

savings and loan rates

Answer 13

HIGHER at credit unions

Question 14

banks have

Answer 14

mortgage services