personal finance

How might grocery stores trick you into spending more money than intended?

Bad deals, Might make the more expensive things more noticeable, they have a strategy to make it so you'll spend more money

Definition and formula for net pay?

Gross Pay - Deductions

How is gross pay different from net pay?

Gross pay is what you earn from a job, Net pay is gross pay minus everything that is deducted, your take home pay

What advice can you give someone when they are creating a LinkedIn Profile

Have a professional picture, have good references

Grace has an annual salary of $50,000 while Jorge has an annual salary of $30,000. However, Jorge is actually the "wealthier" person. Explain how this can be the case.

He could've paid off all of his debt, he might have more than Grace.

Definition and formula for gross pay

Hours worked x Wages

List a few factors that impact the amount someone may pay in taxes.

How much you make, filing status, dependents

1040

I am completed every April -Anyone can use me -I calculate the amount of tax you owe or the refund you receive I-9 -I am received whenever you start a job -You use me to prove that you are eligible to work in the US -You must provide forms of identification when submitting me

W-2

I am received in January -There is one of me for every job you work -You can tell how much you earned and how much you paid in taxes by reading me

1099

I am received in January -You get me if you are not an employee, but were paid by a company -You probably didn't get taxes withheld if you got me, so you may have a big tax bill coming up

When rooming with others in an apartment, why is it important to have rules and expectations written out and agreed on beforehand?

If someone were to stop living there you would be prepared, if they damage anything

What is the largest source of fees for banks?

Overdraft Fees

What alerts could you set up on your checking account?

Overdraft, Everytime you make a payment, low balance, Fees

What are some tips for writing checks?

Pen, Any blank space/draw line to finish it, write cents as fraction, Only use memos when your making like more important purchases

What expenses will decrease when living with roommates?

Rent, Utilities, Groceries, Cable, Internet

In a budget, which expense category is typically the largest?

Rent, housing

What does the federal government spend tax money on? What's the most put toward?

Roads, parks, hospitals military Health

How is the difference between salary and hourly-waged

Salary is what you get paid overall over a certain period of time and hourly-wage is what you get paid per hour.(15$ per hour)

What is a progressive tax system?

The more you make the more you are taxed

Difference between W-2 and 1099?

W-2 comes from your employer, 1099 is when you are not an employee, but you are paid by a business

What does it mean to claim "exempt" on a W-4? Who might want to take advantage of this?

Your employer won't withhold any taxes People who make less than the standard deduction

What should be highlighted during an elevator pitch with a future employer?

Your experience, your education, your name

How does social media play a part in getting a job

Your social media accounts are what show who you are as a person and what you are like, there are also certain job social media apps that are used for finding jobs, like LinkedIn

Who would be 3 appropriate references for when you apply for a job? (List the person's title: e.g. teacher)

a previous or current boss, a teacher, a co-worker

How can you save some money you spend on food?

Coupons, buy in bulk, look for deals

How are credit unions and banks different?

Credit unions are nonprofit, Banks are for profit

What are a few ways to save money when constantly going over budget month-to-month?

Cut down on wants, expensive groceries(coupons), gas(ride a bike or walk if you have a short distance)

What transactions reduce your checking account balance immediately?

Debit card

What are ways you can access your money from your checking account?

Debit card, checks, ATM

Why might someone OWE money to the IRS?

Didn't pay enough taxes

What is a fixed expense?

Does not change month to month, rent

What are some advantages to having a checking account?

Don't always have to carry around cash, it's a safer option, Direct deposit

What are some good habits when keeping your information secure online?

Don't use numbers that are common to you(like birthday, social security), Shouldn't use the same password for everything, have unique passwords, change passwords frequently, you should memorize your routing and account numbers

Self-employed:

400

What are 3 pieces of advice you could give a friend about an interview they may have?

-Make sure you do a lot of research on the company, don't go in to your interview clueless -Make sure you are on time -Act enthusiastic about the job, at least pretend like you're happy to be there

How much earlier could you get paid before your co-workers if you used direct deposit?

1-3 days

Unearned Income

1100

Standard Deduction (current and 2019)

12,400, 12,200

January 1

1st day you can file a tax return

How much is each checking account insured up to? Who ensures them?

250,000$ FDIC

What number of hours classifies a worker for full-time vs part-time?

30-40 hours per week is considered full-time and less than that is considered part time

What is the penalty for filing late? What about more than 60 days after the due date?

5% every month with a maximum of 25% on what you owe, minimum of 435$ fine or fee

What is the 50/30/20 Budget? Be able to calculate

50-needs/30-wants/20-savings

What is a dependent?

A person who relies on the taxpayer for financial support

Describe a Zero-Based Budget

All of your money has a place to go to

What is overdraft protection

Allows you to purchase something that costs more than what is in your account, If you don't have this, your card will be declined/ fees for when you overdraft

What should you do if you notice transactions on your checking account that weren't from you? What could happen if you wait too long to report?

Call the bank, Make sure you know the specific transactions that were wrong, Try to report within 24 hours.

What are 3 ways to pay the taxes you owe?

Cash, check, direct deposit, credit/debit card.

What type of transactions might take the longest to be reflected on your bank statement?

Checks

What are 5 pieces of information you should include on your cover letter?

Contact information, Make your cover letter unique to the company, Keep it to a single page(the shorter the better), Make it easy to read, be truthful in your cover letter

What features are useful when having online and mobile banking?

Conveniency, you can access your balance at anytime, transfer money, pay bills, deposit checks, pretty much anything

What is a W-4 used for?

Employees fill this out to tell employers how much taxes to withhold from their paycheck

December 31

End of the calender year

What are 5 pieces of information you should include on your resume?

Experience, education, skills, achievements, interests

How can unit pricing help you save money on groceries? Describe one challenge you may face when calculating the unit price of an item in the store

Find the best deals, they could make it really hard to find the unit price.

Before renting, what money might the landlord ask for to ensure you're financially reliable?

First and last months rent

What might you compare when deciding where to live?

Location, restaurants, transportation, weather

What is the government's largest source of income for the federal government?

Income Tax

What is a variable expense?

It changes month to month, groceries, gas

What role does a budget play in managing your personal finances? What steps can you take over time to make sure that your budget works for you?

It makes you more flexible with your money

Explain how setting a financial goal(s) can help you create a budget.

It will help you not live paycheck to paycheck, will help you save and spend better.

What deadlines do you need to be aware of when filing a tax return?

January 1st and April 15th

April 15

Last day you can file

January 31

Last day you can get your W-2 from an employer

October 15

Last time you can file with an extension

Where can networking take place

LinkedIn, social media

What information is present on a W-4?

List info about yourself and your family

How can cost of living and local taxes relate?

Local Taxes can determine the cost of living

What does it mean to balance your checkbook?

Make sure all of your transactions are the same, you use your bank register and match it with all of your transactions

What is earned income?

Money earned from working for pay

List 3 needs and 3 wants that might be included in a budget.

Needs-rent, gas, utilities/Wants-shopping, entertainment, snacks

What are gig jobs?

Not a concrete schedule job, very temporary, flexible

What methods can you use to file a tax return?

Print it off, do yourself, pay someone, use a website

What does FICA stand for?

Social Security and Medicare

How can you find out more about the person who is interviewing you?

Social media, LinkedIn, find people who know them and ask them questions, do your research

What does "Pay yourself first?" mean?

Take money out right away, before you spend it on expenses, you set that aside for saving for yourself

Tax deduction vs. tax credit?

Tax deduction lowers your taxable income as a whole Tax Credit- lowers taxable income by individual items and and gives you a larger income

How should you think about the relationship between your resume and cover letter

They should be similar, but you shouldn't take exact information from your resume to your cover letter, your resume should show your experience and your skills in general, and your cover letter should be like a letter made especially for the company you want to work for.

List a few ways that the cost of living from location to location can increase or decrease.

Things might be more expensive, but you could be paid more./Things like housing, rent, stuff like that will increase or decrease depending on the location

What are W-2 used for? Who fills W-2s out and who receives them?

To show the amount of taxes taken out of your paycheck.

Formula for unit pricing

Total amount / how many units there are

What is a person-to-person payment?

When a person sends money to another person using something like paypal, venmo, apple pay, etc./ Online website or mobile app that you can use to pay someone else.

What is direct deposit?

When you directly put money right into your account

What are some good questions to ask an interviewer at the end of an interview?

Where do you see the company going in the future? Who am I going to be working with?

What does it mean to reconcile your account?

You are trying to find the ones that are outstanding(don't show up on both)

Why is it important to have an emergency fund?

You might have a surprise medical bill, something could happen that you might not expect.

What documents are needed to file your 1040 form?

You only need a W-2 or a 1099

What is the Envelope Budget?

You put a set amount of money into envelopes and once you run out of money in those envelopes your done spending

Do you have benefits with a gig job?

no