Is the $1000 her gross or net income?gross net 1. Janie gets a
check after her first two weeks at work, but is bummed that its
only $840. She thought it was going to be $1000!
Slide 4
Well done for #1! The total amount you make is the gross.
Continue Continue
Slide 5
Sorry, thats not right for #1. The gross is how much you make
before other things are taken out. Continue
Slide 6
Are these subtractions called exemptions or deductions?
exemptions deductions 2. The reason Janies check is smaller than
she thought is that certain things were taken out first federal
income tax, health care, and FICA, to name a few.
Slide 7
Well done for #2! Deductions are deducted from your check!
Continue Continue
Slide 8
Sorry, thats not right for #2. Exemptions are things you dont
have to pay taxes on (like dependents), but deductions are deducted
from your paycheck. Continue
Slide 9
Social Security and Medicare Social Security and Medicare or
federal and state income taxes ? federal and state income taxes 3.
One of the deductions is FICA. Whats that?
Slide 10
Well done for #3! BTW: FICA deductions are mandatory.
ContinueContinue
Slide 11
Sorry, thats not right for #3. FICA (SS & M) taxes are
mandatory deductions from your paycheck. Continue
Slide 12
Gross Gross or net ?net 4. Is your take home pay that is, the
amount on a paycheck gross income or net income?
Slide 13
Well done for #4! Net = take home pay. ContinueContinue
Slide 14
Sorry, thats not right for #4. Net = take home pay. Gross =
total before deductions. ContinueContinue
Slide 15
True True or false ?false 5. Federal income tax rates are set
by Congress, but state income tax rates differ from state to
state.
Slide 16
Well done for #5! FYI: some states like Texas have no state
income taxes. ContinueContinue
Slide 17
Sorry, thats not right for #5. Net = take home pay. Gross =
total before deductions. ContinueContinue
Slide 18
Are sales taxes like this considered regressive or progressive
? regressive progressive 6. When you buy a shirt at Northgate, you
pay a sales tax of 7.5%. Some people criticize this tax because its
the same for rich and poor people, and ends up taking a bigger
chunk of money from the poor.
Slide 19
Well done for #6! BTW: Income taxes are progressive because
people with more income pay a higher % in tax.
ContinueContinue
Slide 20
Sorry, thats not right for #6. Regressive = fixed %, hurt the
poor more. Progressive = variable %, hurt the rich more.
ContinueContinue
Slide 21
7.Does this person want more progressive or more regressive
taxes? progressive regressive
Slide 22
Well done for #7! Anyone saying that the richest 1% doesnt pay
enough taxes is arguing for progressive taxes.
ContinueContinue
Slide 23
Sorry, thats not right for #7. Progressive = variable %; the
more you make, the higher your tax % (hurts the rich more).
ContinueContinue
Slide 24
True True or false ?false 8. When you use a debit card, the
amount gets deducted from your checking account almost
immediately.
Slide 25
Well done for #8! If you dont have enough in your checking
account, dont swipe that debit card. Continue
Slide 26
Sorry, thats not right for #8. Debit card charges are deducted
right away but credit card charges arent. Continue
Slide 27
Whats that penalty called - fine or fee ?finefee 9. Zee paid
for her purchase at Walgreens with her check, but when she didnt
have enough in her account, the bank returned her check and both
the bank and Walgreens charged her a penalty.
Slide 28
Well done for #9! Fees are issued by banks and credit card
companies; fines are issued by the govt. as a punishment (like a
speeding ticket). Continue
Slide 29
Sorry, thats not right for #9. Fees are issued by banks and
credit card companies; fines are issued by the govt. as a
punishment (like a speeding ticket). Continue
Slide 30
What was Zees offense floating a check or bouncing a check ?
floating a check bouncing a check 10. (From #9) Zee paid for her
purchase at Walgreens with her check, but when she didnt have
enough in her account, the bank returned her check and both the
bank and Walgreens charged her a fee.
Slide 31
Well done for #10! Bouncing a check is bad; floating one is
normal (we can talk about floating later). Continue
Slide 32
Sorry, thats not right for #10. Bouncing a check is bad;
floating one is normal (we can talk about floating later).
Continue
Slide 33
Mutual fund Mutual fund or savings bond ?savings bond 11. Which
is safer: investing in a mutual fund or a US savings bond ?
Slide 34
Well done for #11! A US savings bond is guaranteed by the US
govt.; a mutual fund has no guarantee. Continue
Slide 35
Sorry, thats not right for #11. A US savings bond is guaranteed
by the US govt.; a mutual fund has no guarantee. Continue
Slide 36
Mutual fund or corporate bonds ? 12. Yi wants to invest in the
stock market, but doesnt want to put all of his eggs in one basket.
Which should he pick? SORRY for the rest, there is no right or
wrong feedback. Please go through them and well review in
class.
Slide 37
Is Myas last sentence correct? 13. Myas wanted to give her
granddaughter $5,000 when she was born, but instead of safely
putting it into a bank account, she wanted it to grow a lot over
time. She said Sure, it could all be gone one day, but I dont mind
the risk. On average Ill get a higher return in stocks than in
buying a Treasury bill.
Slide 38
CD or stock? 14. Which is safest: buying a CD (certificate of
deposit) from an FDIC-backed bank, or buying 10 shares of Wal-Mart
stock?
Slide 39
Collateral score or FICO score? 15. The best way to improve
your ______ is to pay your bills on time and reduce your debt. What
goes in the blank?
Slide 40
Sorry, thats not right for #15. Fees are issued by banks and
credit card companies; fines are issued by the govt. as a
punishment (like a speeding ticket). Continue
Slide 41
Current amount or minimum amount? 16. This is a snapshot from a
credit card bill showing both the current (total) and minimum
amounts due. Paying which one avoids interest charges?
Slide 42
Your credit history or the types of credit you have ? 17. Whats
the biggest % in determining your credit score?
Slide 43
If he can get unsecured credit, or what the loans interest rate
is ? 18. Raj wants to buy a house. He has saved up for a down
payment, and knows he needs a mortgage loan (because he cant pay
for the house all at once.) What does he need to know about the
loans he is considering?
Slide 44
Credit union loans or payday loans? 19. These loans are very
short-term, and can have interest rates as high as 400%
Slide 45
Consumer Protection Comission or Federal Trade Commission? 20.
This is taken from the website of the US government agency that
enforces consumer protection. What name is under that black
bar?
Slide 46
Things that are sneaky but legal, or fraud ? 21. A Ponzi
scheme, forgery, and false advertising are all examples of
what?
Slide 47
True or false ? 22. When buying a home, the larger your down
payment you can make, the lower your monthly mortgage payments will
be.
Slide 48
Is this amount the deductible or premium ? 23. When you have an
accident, the amount of car insurance you pay each month may
increase.
Slide 49
You can never borrow money again, or You may be able to borrow
money later, but at higher rates. 24. If you declare yourself
bankrupt, which is true?
Slide 50
True or false ? 25. When investing your money, you are really
hoping for a higher rate of return than when you save.