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What are the different types of banks?
I. Depository
A. commercial banks
B. credit unions - “members only” banks
II. Non depository
A. for loans, investments, retirements, etc.
How do you choose a bank?
-high vs. low fees
-high vs. low minimum deposit required
-high vs. low interest paid on deposit
-high vs. low access to money
What is a checking account
an account in which you deposit money or withdraw by writing checks or using a debit card
a check is written order form instructing our bank to pay money from your account to another party
When would I ever use a check?
-gifting money
-making large payments
-when businesses want to avoid an electronic fee
-paying rent
What is a debit card & how does it work?
-enables you to withdraw cash or make purchases from your account
-requires a PIN number for security
Step 1
Gather your documents:
-Bank statements, investments records, receipts
-W-2: statement from your employer that shows your annual wages & the amount of taxes withheld
-1099: tax form for reporting things other than wages rom an employer such money earned from a business, rental property, or freelancing
-1098: tax form for reporting all your deductions
Standard deduction
dollar amount that you could subtract from your income to lower the amount of income you’re taxed on
Itemized deduction
list of allowable deductions that are usually more than a standard deduction
Example of deductions
-charitable donations
-interest on student loans
-interest on mortgage payments
-real estate taxes
-unreimbursed medical expenses
Tax credit
a benefit that directly educes the amount you owe to the gov. (ex: hold tax credit & earned income tax credit)
Step 2: Figure out your filing status
