Final Flashcards
What are some factors when choosing a job?
Travel, ammount of vacation time, 401k matching, health care dental care.
What are the Main sources of Income?
Wages, tips and salaries
Do corporations have to pay income tax?
Yes after expenses are paid
Do corporations/ compaines pay state income taxes
Yes but every state is different NY is high while Nevada is low
What would a CEO take into account with state income taxes
What state you locate the company
What is Progressive taxes
what america currently has, taxes increase as payers icome increases.
Regressive taxes
tax rate decreases as tax payers income increases
How do you be a smart shopper?
You should consider price, preferences, do you really need it, income, oppurtuinty cost, does it fit budget, if expensive shop around to find a good price (car washing machine)
What are warranties?
normally get for more expensive items, it gurantees the purchaser by the manufacture promising to repair or replace if neccessary within the warranty.
Do decisions you make effect others?
Obviously (say you came to work) costs might be waking up early but benefits would be making money and providing for the family
What are ways to express price?
advertise the price in smaller amounts, smaller amounts over a period of time is easier to manage.
Government regulating and incentives
Consumer protection lasws require more speciffically whn it comes to packaging of food items. (weight, ingredients, nutritonal guidelines, packaging needs safety.)
Are there taxes on saving accounts
yes you have to pay taxes on saving accounts
Why should you put your money in a bank?
your money is insured and getting some interest is better than none.
What are some options for investing
money markets, Certificate of deposite.
CD lock for 6 months- year less liquid
Saving account has more liquid
What is liquid
the ability and ease with which assets can be converted into cash.
What insures the banks
FDIC and they insure up to 250,000
What does the Federal Reserve do?
raises or decreases the interest rate, raises or lowers the reserve requirements, issues bonds, in time on inflation the increase rates
Are banks good for long term investement growth
No they are not but a stock marekts are they have better gorwth over longer periods of time.
What do you do if you arent reaching finacial goals?
You work more or ask for a raise
How do companies know if they can expand and purchase capital items
do cost analysis to detrmine if they should expand.
What are things to look at when choosing a credit card`
the annual fee, what interest rate you have to pay APR, is there a low introductory rate.
How does your finanical status factor into what credit card to get?
Why do banks offer a low introductory rate, why do some have an annual fee, is there card holder benefits, and do they start out with a small line of credit.
What is a credit score
a 3 digit number that shows how reliable and likely you are to pay finacial obligations on time
Why followers your credit score?
future employeer, insurance companies and credit card companies
to have a good score you should
pay your premiums and debts
how often do you check your credit score
once a year
what is a good score
above a 740
If you cant pay your bills what do you do?
you can file bankrupcy (+ money owed is removed and fresh start - 10 yrs on credit report and hard to get loans)
What is inflaton
its the price of goods and services increasing in value over time
whos affected by inflation the most
people with a fixed income
liability insurance
loss to other people
personal property
loss of insured person
what are deductables
amount you have to pay out of pocket for expenses before insurance.
What is co insurance
bill - deductable and co insurance is 10%, 200-50= 150(.10)=15, 50+15=65 paid
whos responsible for purchasing insurance for personal items in your apartments
you are but if there is more than 1 person livng in the apartment each renter is responsible for there own insurance
how to avoid identity theft
keep information secure and dont carry around social security number, if there is a problem contact policd and credit card company.
Why do some give to charity
they receive tax breaks
What is deducted from paycheck
fedral income tax, social security, medicare
what is gross pay and net pay
net pay is the take home amount net and gross pay is the amount before all the deductions.
