final Flashcards
standard work week
40 hours
self employed
they make estimated tax payments quarterly
tax day
april 15
W4 Form
your employer determines how much tax to withold from your wages based on your allowances
W2 Form
reports your income for the pervious year and how much you’ve paid in taxes
insolvent
liabilities are greater than assets (bad)
solvent
assets are greater than liabilities
canceled check
a check that has been processed by the bank
checkbook register
you should match this with your bank statement
stop-payment order
request that the bank not honor a specific check
bounced check
when a check is returned to the payee’s bank due to insufficent funds
interest
earnings paid on principal from a financial institution
direct deposit
net pay is placed directly into your account electroncally
short term needs
beyond your regular needs: vacation, repairs and emergencies
long term needs
years of saving: house, college, car and retirement
NCUA
this insures credit unions
FDIC
this protects savings accounts from losses up to $250,000
savings account
the first stage of investing is to open one of these
low risk investments
bonds, discount bonds
medium risk investments
stocks, real estate, mutal funds
common stock
represents a type of stock that pays a variable dividend gives the holder voting rights
preferred stocks
represents a type of stock that pays a fixed dividend but has no voting rights
emerging stock
young stock
blue chip stock
stocks of large well established coroprations with a solid record of profitability
mutual fund
pooling of money from many investors to buy a large selections of securities
liquidity
the measure of how quickly you can get cash without loss of value
finance charge
total dollar amount of all interest and fees you pay for the use of credit
pawnbroker
legal business that makes high-interest loans based on the value of personal possessions pledged as collateral
loan shark
unlicensed lenders who charge illegally high interest rate
creditworthy
person or company considered suitable to receive credit espcially based on their reliability
credit report
written history statement of a consumer’s history such as credit history issued by a credit bureau to businesses
credit score
total assigned points used to determine if you will repay debt as agreed
The C’s of Credit
Character, Capacity, Capital, Conditions, Collateral
collateral
property pledged to assure repayment of a loan
ch 7 bankruptcy
liquidation from for individuals straight bankruptcy
ch 11 bankruptcy
reorganization for business that still operate
ch 13 bankruptcy
reorganization for individuals-wage earners plan, most common
voluntary
most common form of bankruptcy ;ask to be declared bankrupt
involuntary bankruptcy
creditors file on your behalf, asking the court
lease
written agreement that allows a tenant to use property for a set period at a set rent payment
month to month rental agreement
allows you to leave anytime
landlord
lessor, responsible for the property
tenant
lessee, who takes possession of the property
Advantages and Disadvantages of renting
Advantages- mobility, social life, lower cost, small responibilities
Disadvantages- noise, privacy, lack of storage
rental inventory
detailed list of property conditions
appraised inventory
real estate appraisers prepare this by examining the structure, size, features as compared to similar homes in the same geographic area
assessed value
for purposes of computing property taxes owed against the city or county in which you live
what are the steps of safeguarding credit cards?
1) sign and activate cards 2) carry only cards you need 3) watch cards cafefully 4) tear up old receipts
