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What is the diffrence between a W2 and a W4 form
W-4 is filled put when when somebody has accepted a new job . a W 2 is filled out by and employeera t th nd of each year.
Form 1040
Used by u.s taxpayers to fill out a fomr for annual income tax.
W 2 form
showing the amount of income you’ve earned from your employeer.
W4 form (employee)
determines how much you should be withheld from your paycheck for income taxes.
adjusted gross income (AGI)
retiremnt ditributions, dividends, and capital gains.
tax exempt
any income that is free from being taxed of. At the state, local, or federal level.
sales tax
taxes on goods and services
income tax return
a documented fie that reports your expenses and other related financial information.
profit
financial benifit whne revenue is granted from taxes or expenses.
preffered stock
a type of stock that gives the onwer the advantage of receving cash dividends before common stockholders.
investment liquidity
the ability to buy or sell an investment quikcly without substantily ruducing its value.
equity capital
funds paid into a into a bussiness by investors in exchange for a commonstokc or preffered
diversication
the process of spread your assets among several diff types of investments to redice risk
dividends
distributions of money, stock or other property tjat a corp pays to stoclholders
corp bond
a corporatoins written pledge to repay a specific amoint of money along with intrest
common stock
a unit of a shore of a company
colectibles
something of value by collectors
capital gain
profit from an investment or sale of a property
what are the advantages of renting vs buying a home?
tax advantages
long term investment if the home value increases
what does it mean to pay points?
it means to pay the extra charged in order to earna low intrest rate.
title insurance
prevents issues with claiming your home title.
tenant
a person who pays for the right to live in a residence onwed by somebody else.
multi unit dwellings
a building containing of multiple complexes. also has all the essental facilities.
mortgage
if you fail to pay the rent you are agreeing to have your property take away
mobility
to ability to move from one place to another
mobile home
portable trailer used as a single person accomidation
home equity loan
the intrest stays the same throughout the whole term
net income
the money you take home after taxes and is deducted from your paycheck.
asset
any item of value
an example of an asset
owning property.
insolvency
liabilites are higher than assets
an example of insolvency
buying an expensive car and getting into a car accident leading to financial distress.
fixed expense
stays the same.
variable expense
constantly changing
comsumer price index
variation in prices paid by typical consumers for retail goods and other items.
opportunity cost
the best alternitive to make a financial decision
cash outflow
all of the money that you spend
budget surplus
setting a budget with having enough money to spend more than your budget is set to.
liability
something you are using an are supposed to pay back.
provide 1 example of a liability
bills that must be paid for, mortages, student loans.
provide 1 example of a asset
cash or houses.
provide 1 example of a fixed expense
salary, utility bills, and rent.
provide 1 example of a variable expense.
store prices.
provide 1 example of cashoutflow
leasing automobile fees, bank loans, salary given out to emplyees.
automatic payment
your bank will atumaticaly withdraw the money from your account.
automatic teller machine
a computer terminal that allows withdrawl of cash from your account.
bank reconciliation
a report for the diffrence between the bank statement and the checkbook balance.
Certificate of Deposit (CD)
a savings alternative when money is left on deposit for a certain period of time. to earn a specific rate of return.
compounding
the process by which interest is earned on both the principal the original amount you deposited and on previously earned interest.
commercial
a for profit institution.
what finacial servoces does a commericla bank offer?
full range. checking, savings, and lending.
Who do these banks serve?
indivuduals.
credit card
a substitute for cash or check. required to pay back at each billing cycle.
credit union
non-profit financial institution which is owned by its members and it’s organized for their benefit. Most offer a full range of financial services.
debit card
cash card that allows you to withdrawl money to pay directly from your savings account.
demand deposit
money that can be withdrawn from your account without prior notice.
direct deposit
make deposits directly your account.
electronic banking
ability to use a banking service with internet 24 hours 7 days a week.
Federal Reserve System
the central bank of the United States.
intrest rates
the amount owed
liquidity
ability ot convert into cash.
mutual funds
investment program provided by shareholders. it is professionally managed.
Pawn shops
items typically for people who are lower-class individuals. But, have higher fees.
savings deposits
a bank account
savings and loan associations
financial institution that specializes in savings accounts and mortgage loans.
Do they now offer the same services as a commercial bank
yes
time deposit
a deposit in a bank account that cannot be used for withdrawal unless you have the required permission.
U.S Savings Bond
savings alt. the safest financial stratigy
annual intrest rate
the cost you pay each year for borrowing money
APR
cost of credit on a yearly basis expressed as a percentage
capacity
can you repay your loan?
character
will you repay the loan?
capital
what are your assets and net worth?
collateral
what if you do not repay your loan?
Consumer Credit Counciling Service
trained professional money, debt managment, budgeting.
cosigners
if the other person is unable to pay it then you will be responsible for paying.
credit
the ability to purchase goods or services.
credit bureaus
a compnay that collects related information and and makes ot availbes to credit card companies and financial institutions.
credit limit
the max amount of credit a financial institution or lender will extend for a certain line of credit.
creditor
a person or comapany to whom money is owned
credit rate
worthiness on general terms or respect to a financial obligation
debt-repaying plan
a series of steps yo can take to pay off your outstanidng debts.
down payment
used on real estate or cars what you pay upfront when purchasing a service or good.
finance charge
fee for the extension of credit
financing
to provide funding
grace period
the billing cycle and the payment due date
instalment paymemts
paying a bill through small payments
intrest
money paid regularly at a particular rate used for debt repayment or loans
intrest rate
a portion of a loan that is charged as intrest
line of credit
usage of money incase you need funds
trade - off
excahange of something of value
principal
money you agreed to pay back
2 pros of using credit
easier than carrying cash everywhere, able to borrow money
adjustable- rate mortgage
a home loan based upon the market changes over time.
appraisal
a writen document showing how much an property is worth
appraised value
professional judgment
book value
the estimated real estate based upon the Kelley Blue Book
condominiums
a housing conmplex that are seprate and onwed by one individual
deed
officlal document transferring ownership from seller to buyer
escrow account
money set aside for property taxes and homeowners insurance
Note 
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