personal finance final all units but unit 2 and 5
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63 Terms
Q: What is Form 1040?
The main tax filing form that individuals use to file their annual income tax returns.
Q: What is Form 1099?
A form that details all "nonemployee" compensation, including for freelancers or contractors.
Q: What is a dependent?
Someone you financially support who can be claimed on a tax return to reduce your taxable income.
Q: What is a tax deduction?
An amount subtracted from your tax liability that lowers your taxable income.
Q: What is Form W2?
A form employers send to employees reporting annual wages and taxes withheld.
What is Form W-4?
A form employees fill out to tell their employer how much tax to withhold from their paycheck.
Q: What is withholding?
The portion of wages not included in a paycheck because it's sent to tax authorities.
Q: What is a budget?
A plan for spending, saving, and investing money.
Q: What is gross income?
Total earnings before taxes and deductions.
Q: What is opportunity cost?
What you give up when making a decision.
Q: What is net income?
The amount of money left after taxes and deductions.
Q: When is the U.S. tax filing deadline?
April 15.
Q: What is a long term financial goal?
A goal lasting more than 5 years.
Q: What is a medium term financial goal?
A goal between 2 and 5 years.
Q: What is a short term financial goal?
A goal less than 2 years.
Q: What are employee benefits?
Extras received from employers for working full time
Q: What is investing?
Using money to make more money.
Q: What is the Rule of 72?
72 divided by the interest rate equals how many years it takes money to double.
Q: What is a corporation?
A legal entity that offers shares of stock.
Q: What is public stock?
Stock available for anyone to buy.
Q: What is private stock?
Stock only select individuals can buy.
Q: What is a shareholder?
A person who owns stock in a company.
Q: What is a stock exchange?
A marketplace where stocks are bought and sold.
Q: What is a stockbroker?
A licensed individual who trades stocks.
Q: What is the SEC?
The Securities and Exchange Commission; regulates financial markets.
Q: What is insider trading?
Using confidential info for financial gain in the stock market (illegal).
Q: What is a ticker symbol?
The short code representing a publicly traded company.
Q: What is a parent company?
A company that owns another company.
Q: What is volatility?
The degree of ups and downs in the market.
Q: What is a bear market?
A market with prolonged falling stock prices.
Q: What is a bull market?
A market with prolonged rising stock prices.
Q: What is an annuity?
A fixed sum of money paid yearly, typically for retirement.
Q: What is an IRA?
An Individual Retirement Account for saving toward retirement.
Q: What is cryptocurrency?
A digital currency.
Q: What is a 401(k)?
A retirement plan through an employer, funded directly from paychecks.
Q: What is a bond?
A loan to a company or government that pays you interest.
Q: What is a mutual fund?
A pool of money invested in various securities by a professional manager.
Q: What is a stock?
Partial ownership in a corporation.
Q: What are commodities?
Tradable raw materials like oil or wheat.
Q: What is a commercial bank?
A for profit bank that holds money and issues loans.
Q: What is a credit union?
A nonprofit financial institution with membership requirements.
Q: What is a savings and loan association?
A bank that primarily provides real estate loans.
Q: What is an online bank?
A bank with no physical locations; all access is via the internet.
Q: What is the FDIC?
Federal Deposit Insurance Corporation; insures bank deposits up to $250,000.
Q: What is liquidity?
How easily money can be accessed and spent.
Q: What is a checking account?
A bank account with easy access for deposits and withdrawals.
Q: What is direct deposit?
Automatic deposit of wages into a bank account.
Q: What is a check register?
A record of deposits, checks, and withdrawals.
Q: What is an endorsement?
A signature and instructions written on the back of a check.
Q: What is reconciliation?
Comparing your check register to a bank statement to determine your current balance.
Q: What is an outstanding check?
A written check that hasn't been cashed or cleared yet.
Q: What is a savings account?
A bank account that earns interest and limits access.
Q: What is interest?
A fee for borrowing money or a reward for saving.
Q: What is simple interest?
Interest paid only on the principal amount.
Q: What is compound interest?
Interest calculated on both the principal and previously earned interest.
Q: What is a money market account?
A high interest savings account with withdrawal limits.
Q: What is a certificate of deposit (CD)?
A savings account with a fixed interest rate and term.
Q: What is an ATM?
An Automated Teller Machine for banking transactions.
Q: What is mobile deposit?
Depositing checks via smartphone photo.
Q: What is a debit card?
A card that lets you spend money directly from your bank account.
Q: What is an overdraft fee?
A charge for spending more money than you have in your account.
Q: What does it mean to deposit money?
To put money into a bank account.
Q: What is a service charge?
A fee a bank charges for account maintenance or transactions.
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Flashcards (38)