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