Everfi - Financial Literacy
W-2
A document your employer sends you that tells you how much you've made and how much you've paid in taxes in the last year
Gig Economy
A flexible market that allows you to work short-term, independent jobs
Stock
A share of ownership in a corporation.
Things to consider when creating a budget
Charitable donations, entertainment expenses, and financial goals
Bank statements, credit statements, and records of cash expenses help you to estimate your __.
Expenses
Access to investment advice is a common feature of a financial institution (T/F)
False
Check cashing companies typically charge low fees (T/F)
False
If you are behind on loan payments, a realistic option is for you can ask to get out of your loan (T/F)
False
There is no relationship between the level of education received and lifetime earnings (T/F)
False
When considering a job offer, you should only consider how much you're being paid before you accept the offer. (T/F)
False
Possible tax or deduction which may show up on your paycheck
Federal income tax, Contributions to retirement savings, FICA
Benefits available from your employer
Healthcare, paid time off, disability insurance, and matching contributions to a retirement account
Benefits of using a budget
Helps keep track of money you receive, helps to prioritize your spending, helps reach short- and long-term financial goals
Emergency Fund
Helps you prepare for unexpected expenses
To maintain a good credit score you must _____________.
Manage your debt wisely
What should you consider when setting a budget
Needs and wants
Going directly to a car dealer for a loan to keep things simple is a...
Not great because they typically offer higher interest rates
Good ways to track your budget
Notebook and pencil, Online software app, Envelope method
W-4
Tells your employer how much federal income tax to withhold from your paychecks to send to the IRS
Net Pay
The amount of money you're paid, after all taxes and deductions are taken out of your paycheck is
A financial institution may offer for you to pay a little now and pay the rest after your next pay day if you are behind on loan payments (T/F)
True
Credit cards can help build credit history when paid off on time regularly (T/F)
True
If you pay your credit card balance in full each month, it will increase your credit score (T/F)
True
In your budgeting process, you look at recurring expenses before reviewing your wants (T/F)
True
Rounding up your expense estimates to add a buffer with help ensure you don't go over your budget (T/F)
True
To avoid spending more than what is in your bank account, you should keep your own records to compare with your financial institution's records (T/F)
True
Unexpected expenses should be planned for (T/F)
True
Using a loan could help you purchase a house (T/F)
True
What do you need in order to fill out your 1040
W-2, Your routing and bank number, A record of any other supplemental income
What is a benefit of having a good credit score?
When you need a loan, you'll have more loan offers to pick from