Take Charge Final Review

Capacity

This tells a creditor whether or not you can repay any debts

Collateral

This is a protection for creditors when they give you credit

Cosigner

A person who agrees to pay off a loan if the original party does not pay

Installment Credit

Closed-ended, has a specific payment for a certain period of time

Car Loan

Example of installment credit

Revolving Credit

Open-ended, does not have a specific payment/period of time

Credit Cards

Example of revolving credit

Resume

Your written summary of experience

Cover Letter/Letter of Application

A letter sent to a potential employer expressing interest in a job

24 Hours

How soon after an interview should you send a thank you letter?

No

Can you be asked how old you are in an interview?

Pay Yourself First

Setting aside money in your savings account once a month

Rent

Example of a fixed expense

Groceries

Example of a variable expense

ATM Fee

A bank fee that is applied when you use an ATM that is not associated with your bank

Monthly Service Fee

A bank fee that is applied when you have certain accounts

Overdraft Fee

A bank fee that is applied when you use more money than you have in your account

Transaction Fees

A bank fee that is applied when you do too many transactions

Government Bonds

Which is a safer investment: A government bond or mutual fund?

401(k)/403(b)

Retirement plans offered by employers; typically having an employer match

EFT

Electronic Funds Transfer

Electronic Funds Transfer

Moving funds without paper currency physically exchanging hands

Direct Deposit

Having your paycheck put straight into your account rather than depositing a check

Money Transfers

Moving funds from one account to another

Traditional IRA

Tax-deferred growth; you pay taxes only on investment gains when you make withdrawals

Roth IRA

Tax-free growth; no taxes are paid when you make withdrawals

25/50/25

What is the required auto liability insurance in Nebraska?

Renter's Insurance

This type of insurance protects tenants against loss of personal property.

26

Children can be on their parent's health insurance until what age?

Whole-life

Life insurance that provides insurance protection and a cash value.

Soft-skill

A skill that is transferable from job to job

Employment-at-will

According to this law, employers can fire an employee for any reason.

Protected Classes

Groups of people who are protected from discrimination in the workplace

Networking and Job Interest

What is the purpose of a job shadowing experience?

Income, Location and Required Experience

Factors to consider when choosing a career include

Hard Skills

Skills that are specific to a career or industry; not transferable to every career

W-2

The form given to you by an employer to fill out a 1040EZ

W-4

The form you fill out at the beginning of a job in order tell your employer your marital status and amount of allowance you would like withheld

1040EZ

The federal income tax form

1040N

The state income tax form

Savings Account

An account to help reserve money, low interest rate

Money Market Account

An account where interest is built on tiers and you can write 3 checks a month

Stocks

A share of ownership in a company that comes with voting rights

Mutual Fund

A grouping of different stocks, bonds, and other investments that you can buy shares of

Real Estate

Homes or land that people can sell for a profit

Certificates of Deposit

An account where a specific amount of money is saved at a specific interest rate for a specific rate of time

Return on Investment

This measures the gain or loss generated on an investment

Rate of Return

This is the gain or loss generated on an investment, typically given as a percentage

Compound Interest

When interested is added to the principal of savings so that you earn interest on interest

Simple Interest

Interest is earned solely on the principal amount of savings

Principal

The initial amount of savings, before any interest is earned

Job Application

A form filled out to show initial interest in a job opening

References

People who can speak to your character, work experience, and skills

$9

What is Nebraska's minimum wage?

Earned Income

What is all taxable income and wages you get from working?

Unearned Income

The income that comes from investments and other sources not related to employment is:

1040EZ and W-2

The two tax forms you need to file federal income taxes are:

Gross Pay

Your income before taxes and deductions are take out is:

Net Pay

What is your income after taxes and deductions?

Social Security

FICA tax pays for:

6.2%

The FICA tax percentage

1.45%

The Medicare tax percentage

Associates Degree

This degree comes from a community college.

Doctorate

Who earns more: A person with a bachelor's degree or a doctorate degree?

Scholarships and Grants

What two sources of financial aid that are considered free money?

Tuition

What is the cost of college courses and fees?

Room and Board

What pays for the cost of living on campus?

Public Universities

These universities receive tax money to keep costs down.

Private Universities

These universities receive donations from private donors in order to stay in operations

Principal

How much you deposit in your savings account before interest is earned OR how much you borrow in a loan or credit form

Reconciling (Balancing) the Account

The process of comparing your bank balance with your checkbook balance is:

Outstanding Check

A check you've written but has not been received by your bank is a(n):

Rule of 72

The amount of time it'll take you to double your money when invested or saved

FDIC

It insures bank deposits up to $250,000 per account

NCUA

It inures credit union deposits up to $250,000 per account

Insurance

An agreement between an individual and insurer to protect the individual

Premium

The amount you must pay for insurance

Deductible

The amount you must pay before your insurance pays for a claim

Beneficiary

The person who receives any proceeds from a life insurance policy if the insured person dies

Disability

The type of insurance that replaces part of your income lost due to an illness or injury is called

Credit

The promise to pay at a future date for something of value that is received now; the present use of future earnings

Character, Capacity, Collateral

The 3 C's of credit

Character

This tells a creditor whether or not you are a trustworthy candidate for credit