Studied by 32 peopleWhat is an ESCROW
A monthly repayment of property taxes and homeowner’s insurance
The first step in the home buying process is to what
figuring out what you can afford
What advantage do you get if you pay off your home mortgage
a guarantee rate of return on your investment
What is refinancing
replacing an existing mortgage by obtaining anew one that repays the old one
What are down payments
20% payment on the house
What is a home mortgage
a debt instrument secured for your home
What are closing costs
fees paid at the settlement date by the buyer or the seller
The term points on a mortgage refers to what
refers to a fee charged by the lender to obtain a specific interest rate
Why is leasing not a good financial arrangement for the buyer
the dealer builds the profit
What is a Carfax repot
history report of a car
How does the envelop system work
budget with cash in enveloped categories
What is discretionary spending
spending that can be changed or adjusted as necessary
What is Obama Care
federal statute in 2020 to increase insurance quality, affordability, and availability
What is insurance premium
the monthly fixed amount you pay for your insurance whether you use it or not
2 common costs of all types of insurance
premiums and deductibles
What is health insurance annual deductible
what the individual pays each year before the insurance pays anything
What is tax avoidance
planning wisely to pay your share of taxes but no more than that
Use Tax
a form of sales tax that you must pay for goods and services you intend to use in a state where you'd normally pay sales tax
Tax Avoidance
An action taken to lessen tax liability and maximize after-tax income
Tax Evasion
an illegal activity in which a person or entity deliberately avoids paying a true tax liability
Charitable contributions will be a tax deduction if you -----
itemize
1099
a collection of tax forms documenting different types of payments made by an individual or a business that typically isn't your employer.
Keep good records to reduce ------ -----
tax costs
student loan interest can be a----- ------
tax deduction
tax exemption
fed and state governments exempt organizations from income tax entirely when it serves the public, such as charities
financial problems due to poor planning or economic downturns can make you work -----
longer
whole life insurance
is for your whole life and builds a cash value.
review the career planning chapter in your book (most of this is common knowledge)
okay?? i wont be but thanks ig
annual out of pocket maximum for medical
the most that you'll have to pay for covered medical services in a given year
coinsurance
the amount you pay for covered health care after you meet your deductible
health insurance premium
The amount you pay for your health insurance every month
deductible
The amount you pay for care or a loss before the insurance company starts to pay its share
General rule = lower the deductible, the higher the premium
For a young adult with no dependents, which type of insurance would likely be the most valuable?
disability
What is a cafeteria plan?
A plan that allows you to choose benefits that best fit your needs.
Note
Flashcard