Test (weeks 10-13 Finance) What two sections make up the "Owe" portion of the pie diagram?

W-2 Form

A form shows the amount of taxes withheld from your federal and state taxes

Certificate of Deposit

A product offered by financial institutions that offers higher interest rate in exchange for the customer agreeing

A ____________ is defined as a group of people living in the same place or having a particular characteristic in common.

Community

Loans that are either personal loans or second mortgages issued to borrowers to help pay off several other credit accounts by combining them into one loan.

Consolidation Loans

The federal agency responsible for disaster relief is known as:

FEMA (Federal Emergency Management Agency)

What Federal department is responsible for enforcing laws related to consumer credit?

Federal Trade Commission

What are some types of taxes that you may pay in your lifetime?

Income taxes, Sales taxes, Property taxes, Social Security taxes, medicare taxes

Loans based on borrowed money from an existing account such as a retirement or investment plan that has to be paid back before using the account for retirement.

Insurance / Retirement Account Loans

When should you receive your W-2 Form from your employer?

January 31st

Which of the following deductions that the employee has voluntarily signed up to have deducted?

Life insurance, 401K and other retirement/investment plans, union or organizational dues, stock plan, and health insurance

Paying taxes is a biblical principle. In what book of the Bible does Jesus tell us to render to Caesar what is Caesar's?

Matthew

Short-term loans with high interest rates and fees that tend to reflect poorly on your credit rating.

Payday or Car Title Loans

Money Market Account

Similar to a savings account however you can write checks from this type of account

When choosing the right organization to be a part of, what information is important to check beforehand?

The "About" page on their website, Their contact information and Tax ID Number, Internet research and reviews, Their financial information Accomplishments and track record, The organization's transparency

What company is the leading source for most lenders researching credit information on a person applying for a loan or some type of credit?

The Fair Isaac Corporation

Social Security taxes, also known as the "Federal Insurance Contributions Act" tax, provide benefits for retired workers and their dependents and for disabled workers and their dependents. Correct!

True

How do a savings account and money market account differ?

You can write checks from a money market account, but cannot from a savings account

What is a credit score?

a "snapshot" of a person's creditworthiness at one point in time

tax credit

a dollar-to-dollar reduction on your actual tax bill

Estate Tax

a federal tax on inheritance

Social Security Tax

a federal tax to help pay for retirement benefits, and disability payments

icnome tax

a governmnet tax based on a persons income

Inheritance Tax

a state tax on inheritance

The Equal Credit Opportunity Act prohibits credit discrimination based on _______________. Choose all that apply.

age, gender, race or color, your religion

1 Thessalonians 5:18 says to "give thanks in ______ circumstances."

all

Tax-deferred accounts _________________________.

are taxed later when a person has retired and is in a lower tax bracket

A department store-sponsored card offers special incentives to shop with the store, but it also carries higher interest rates. These cards _______________________.

cannot be used anywhere you want since they are sponsored by a specific store

What kind of credit is the most favorable to have on your credit report?

credit backed by assets or equity such as a house mortgage or car loan

To determine net pay, you subtract ____________ from ____________

deductions; gross

What are some items that the Federal Government uses citizen tax money to pay for? Choose all that apply.

defense, roads, medicare, social security

Getting into debt can ________ God an opportunity to provide for our needs.

deny

Credit card interest rates never go above 10%.

false

In Ron Blue's video about credit cards, he states that when you use a credit card as opposed to cash, you will spend 34% less than if you just spend cash.

false

In debt situations, compounding works in your favor.

false

It is mandated that all Fire and Rescue workers are paid.

false

It is part of God's plan for us to live an individual life, away from others.

false

When choosing to apply for a new credit card, things like airline points and cashback rewards should be considered of high priority.

false

You are not required by law to pay taxes

false

When you do not pay off a credit card in full each month, you may potentially pay hundreds or thousands of dollars in ______________ fees.

financing

TSP

for people employed by the federal government

IRA

for people who want to put their money into a tax-deferred account at a bank or through their employer

401 (K)

for people who work for public or private for-profit companies

457

for people who work for state or local governments, schools, and universities

403 (b)

for people who work for tax exempt or non-profit organizations

Paying taxes is a way to live a ____________ life for the provision that God has given us.

grateful

_________ wages are the amount you are paid for your work before any taxes or benefits are taken out of your paycheck. You will not receive this amount in your bank account.

gross

If you pay off your credit card balance during the allowed grace period each month, you should not be charged any ____________.

interest

A tax deduction is a dollar amount that the IRS allows you to subtract from your adjusted gross income, or AGI, making your taxable income _________________

lower

Financial issues are never really a ____________ problem, but are symptomatic of ____________ issues

money; heart

______ pay is the amount of money you actually get to take home, otherwise known as "take-home pay."

net

When we grow in relationship with ______________, we grow in relationship with God.

others

regular earnings

pay received for a persons regularly scheduled hours

Overtime pay

pay received for hours worked after the normal scheduled hours

Dividends from Stocks and Bonds

payments made by a company to the owners of a company's stocks and bond

The costs for public education are mainly for what?

payroll expenses related to public school employees

A community is defined as a group of _____________ living in the same place or having characteristics in common.

people

What are some services within a community that are paid with tax revenue?

police department, fire and rescue departments, library, public schools, sanitation/ waste removal

What areas fall under Law Enforcement and are paid for in part or whole by tax revenue? Choose all that apply.

police/sheriff's department, courts and judges, correctional facilities, and animal control

Most people participate in tax-deferred savings and investments accounts for ______________________.

retirement and travel

401(k) plan

tax-deferred

457 plan

tax-deferred

Federal TSP (Thrift Savings Plan)

tax-deferred

Roth IRA

tax-deferred

money market accounts

tax-deferred

403(b) plan

taxed

CDs (certificate of deposit)

taxed

bond dividends

taxed

savings account

taxed

stock dividends

taxed

As a citizen of the United States, you are required to pay _________.

taxes

What two sections make up the "Owe" portion of the pie diagram?

taxes & debt

Proverbs 22:7

the borrower is a slave to the lender

What are the four guidelines to consider when determining if debt is a wise decision?

there is a guaranteed way to repay, you have peace of mind via "gut check" questions, the economic reward is greater than the economic cost, there is unity with important relationships regarding the decision

Savings Account

this account will be through your bank and earns little interest income

YTD (year-to-date)

total earnings and deductions for the year

Public libraries are funded through tax dollars.

true

The "About Page" of an organization's website can help you learn valuable information about that organization.

true

It is illegal for debt collectors to _______________________.

use abusive or deceptive practices to collect debt you owe

What is the portion of an employee's wages that is not included in their paycheck because it goes directly to federal, state, and local taxes?

withholding