sources of income - ✔✔ wages, stocks, interest, salary
exemption - ✔✔ a deduction allowing to reduce the amount of your income that would
... [Show More] be taxed
liquidity - ✔✔ access to money fast
discretionary income - ✔✔ extra money you can use for anything
money orders - ✔✔ bought @ bank; if you don't trust the lender of money
Why does US currency have value - ✔✔ because we agree it does
opportunity cost - ✔✔ the loss of potential gain of other alternatives when one alternative is chosen
who is the most hurt and least hurt with inflation? - ✔✔ biggest losers- those with fixed income
winners- those who are priced out of the loan market
role of US treasury department - ✔✔ print money, collect taxes through IRS, look at national debt
PYF - ✔✔ pay yourself first- put some money in the bank then pay bills
CD - ✔✔ certificate of deposit- a time deposit that pays a fixed rate of interest for a specific length of time
institutions that give loans - ✔✔ banks, credit unions, pawnshops, finance companies, etc.
which institutions charge the highest interest rate on loans? - ✔✔ in most cases: a bank
what is a credit union? - ✔✔ a nonprofit organization whose members can borrow from pooled deposits at low interest rates
what is an advantage of using a credit union? - ✔✔ credit unions can offer higher savings rates
members own credit
overdraft protection - ✔✔ when you write a check greater than money you have in your account bank will pay who you wrote a check to
compound interest - ✔✔ interest on you money
time value of money - ✔✔ a dollar today is worth less tomorrow
liquid financial products vs. products that are less liquid - ✔✔ checking account vs. CD
rule of 72 - ✔✔ interest/72= time it takes to double
forms of endorsement for personal check - ✔✔ government issued ID's needed
reconciling a checking account- WHY? WHEN? - ✔✔ why- make sure all fees are correct & ID isn't stolen, etc.
when- every month
repayment of student loans - ✔✔ starts after you graduate from college
subsidized and unsubsidized
subsidized - ✔✔ interest not charged until after graduation
unsubsidized - ✔✔ interest accumulates while in school
tax anticipation loans - ✔✔ expecting taxes will cost more than money you have [Show Less]