personal finance mid term

Wearing a seat belt while driving & wearing a helmet when biking

An example of risk management strategy

False

There is no relationship between the level of education received and lifetime earnings.

Your employer benefits documentation.

You don't need this to fill out your 1040.

A consequence of not having health insurance

You must pay all costs for health care and medical emergencies.

Things you need to fill out your 1040.

Your W-2, routing & banking number, a record of any other supplemental income.

W-2 form

Your employer sends you this form that tells you how much you've made and how much you've paid in taxes in the last year.

Your gross pay plus any bonuses

Your net pay is NOT

Insurance

what do people purchase as a form of risk management to protect themselves from losing a lot of money in the event something happens to them or their property?

The security system will alert authorities.

How is having a security system for your home a risk management strategy?

W-2 form

How much taxes you've paid in the last year based on how much you've earned.

Insurance Premium

If you get into a car accident, your ________________ may increase because you will be considered riskier for insurance companies to cover.

How insurance can protect you against financial loss.

Insurance can cover you or your property in case of an accident, theft, or another unpredictable event.

Gig economy

A flexible market that allows you to work short-term, independent jobs.

Risk

Buying a home security system is an example of protecting your home against

Collision insurance

Insurance that covers damage to your car from an accident.

Liability insurance

Insurance that will pay for injury to another driver and/or damage to their car if you are in an accident

Collision insurance

Insurance that will pay to get your car fixed in the event of an accident.

Overtime pay

Is also not a possible tax or deduction that could come out of your paycheck.

The importance of having insurance

It's important to have insurance so people can protect themselves from losing a lot of money in the event of an unpredictable event or something happens to them or their property & so individuals can defend against the possibility of financial loss due to unpredictable event.

Bachelor's degree

Most likely result in the highest lifetime earnings.

Sales tax

Not a possible tax or deduction that could show up on your paycheck.

Buying a new car

Not an example of risk management strategy

Insurance

Something people buy to protect themselves form losing a lot of money in the event something happens to them or their property is known as..

Facts about taxes

Taxes pay for schools and government departments, taxes pay for roads and emergency services, taxes are often used at the federal, state, and local levels.

What the w-4 form is used for

Tell your employer how much federal income tax to withhold from your paychecks to send to the IRS.

Insurance premium

The amount of money you pay for insurance policy

Net pay

The amount of money you're paid after all taxes and deductions are taken out of your paycheck.

Net pay

The amount of money you're paid, after all taxes an deductions are taken out of your paycheck.

Insurance Deductible

The amount you owe before insurance will cover the rest of the bill

True

The more education you receive, the higher your lifetime earnings will be.

Why you fill out a w-4 form

To determine how much federal income tax your employer should withhold from your paychecks.

Purpose of the w-4 form

To inform your employer of how much federal income tax to withhold from your paychecks.

Risk management strategies

Wearing a seat belt, not texting when driving, and driving carefully are all examples of..

the Policyholder

Who is the insurance premium is paid by

Theft & financial loss

What can insurance protect you from?

Damage to your car

What collision insurance will cover in the event of an accident.

Injury to yourself

What does liability insurance not cover in the event of an accident

Buying a home security system

What is a risk management strategy you could use to protect your home?

Airline tickets to your dream vacation

What should you NOT use a loan to purchase

Deductable

When filing an insurance claim, the policyholder must pay a ______________, which is the amount you owe before insurance will cover the rest of the bill.

The Policyholder

Who is the deductible is paid by