Banking, Budgeting, Taxes Flashcards
(43 cards)
Outstanding check
- Check that has been written, listed in your register, but not yet cashed on the receiving end
- Why maintaining your checkbook is important
Cancelled checks
Outgoing check that has been cashed and cleared by the bank
Credit union
Member owned and controlled financial institution
Fixed expenses
Bills that are the same amount every month are called what?
If a check is made out to cash, who can cash it?
Not made out to anyone individually. Instead of a persons name you just write “Cash”.
Whoever has it can deposit it
When putting together a budget you should always pay yourself first, or have a savings category. How
much should you being putting into this account?
-10%
- If a check has a different amount written in words and a different amount written numerically what
happens?
Word value is taken
What is a stop-payment order?
stop a check from going through before it is processed
Checks more than 6 months old do banks have to honor (cash) it?
No
Give examples of fixed expenses?
Regularly paid expenses Generally the same each time period Rent, insurance, car payments, etc.
Give examples of variable expenses?
Expenses that fluctuate depending on consumption Food, gas, entertainment
Checks listed in your check register but do not appear on your bank statement are known as:
Outstanding checks
The FDIC insures deposits on all savings accounts up to _____
$250,000
When using a _____________ the amount of your purchase is automatically deducted from your
checking account.
Debit card
. At the bottom of the check there are two sets of numbers. What are they? How many digits do each
have?
Routing number and bank number
Routing first
Routing (7 numbers) Bank account number is 9
What are advantages of online banking?
Connivence
Restrictive endorsement
A check that is endorsed with the words “For deposit only”
Direct deposit
-Provides the convenience and safety of having your payroll
check electronically placed into the bank account(s) of your choice.
- What three resource pools should be used to handle an unexpected expense? What is the order that
they should be used?
- Look to see if insurance covers it
- If insurance doesn’t cover all of it, savings or emergency fund
- Use credit. Don’t take out loans bc they get interest
Approximately how much of your net income should be used for housing expenses?
24-35%
Budgeting allocation for the categories
a. Housing
b. Transportation
c. Life/Other
d. Debt Repayment
e. Savings
Housing:24-35%
Insurance: 10-15%
Food:10-15%
Transportation:10-15%
Savings: 10%
Other utilities:5-10%
Entertainment: 5-10%
Personal p: 5-10
What is a W2? When should you receive it?
- received in January
- There one of me for every job I work
- You can tell how much you earned and how much you paid in taxes by reading me
Which states do not collect income taxes?
Florida, Texas, Oregon
What is APR?
Annual percentage rate- how much you pay in fees over the course of a year without taking into
account compound interest
