SLS test

Question 1

50/30/20 Budget

Answer 1

A budgeting method that allocates 50% to needs, 30% to wants, and 20% to savings and debt repayment.

Question 2

Auto Lease

Answer 2

A type of auto financing that allows you to “rent” a car from a dealership for a certain length of time and amount of miles. Once the time period ends, you either return the car or purchase the car if that is an option in your contract.

Question 3

Budget

Answer 3

A plan of your expected income and how you will use it to meet your expected expenses over a period of time.

Question 4

Cash Envelope Budget

Answer 4

A budgeting method where money for monthly spending is taken out in cash and placed in labeled envelopes according to budget categories. Spending occurs only from the corresponding envelopes.

Question 5

Cost of Living

Answer 5

The amount of money needed to sustain a certain level of living, including basic expenses such as housing, food, taxes, and healthcare; often used when comparing how expensive it is to live in one city versus another.

Question 6

Deduction

Answer 6

Any items subtracted from your paycheck, including state and federal income taxes, Social Security, health insurance or 401(k) contributions.

Question 7

Deficit

Answer 7

When your expenses exceed your income

Question 8

Down Payment

Answer 8

A portion of the total cost of an item, such as a car or house, that must be paid at the time of purchase. The buyer will often take out a loan to finance the remaining balance.

Question 9

Expenses

Answer 9

Items or services you pay for such as rent, groceries, entertainment, bills, etc.

Question 10

Fixed Expense

Answer 10

A cost that can be expected at regular intervals and that remains the same amount (e.g., monthly rent payment)

Question 11

Freelancer

Answer 11

An individual who earns money on a per-job or per-task basis, usually for short-term work. They are not employees of an organization.

Question 12

Gig Economy

Answer 12

A labor market where the majority of people have short-term jobs or gigs such as freelancing and temp jobs rather than long-term employment.

Question 13

Gross Pay

Answer 13

Total earnings before any deductions are taken.

Question 14

Income

Answer 14

Money that is received from work, investments, business, etc.

Question 15

Needs

Answer 15

Expenses that are essential for you to be able to live and function.

Question 16

Net Pay

Answer 16

Total earnings after payroll taxes and other deductions have been taken out; also called take-home pay.

Question 17

Pay Yourself First

Answer 17

strategy where you save a specified amount of your paycheck before doing anything with the rest of your money.

Question 18

Renters Insurance

Answer 18

A form of property insurance, available to renters, that covers losses to their personal property and protects the insured person from liability claims.

Question 19

Residential Lease

Answer 19

A contract between a tenant and a landlord providing the terms and costs for renting the property

Question 20

Salary

Answer 20

A fixed amount that you are paid over a period of time, regardless of how many hours you work.

Question 21

Surplus

Answer 21

When your income exceeds your expenses, and you have money left over.

Question 22

Unit Price

Answer 22

The cost for one item or measurement that allows it to be easily compared to other similar products to evaluate which is a better deal.

Question 23

Utilities

Answer 23

The basic services your home, apartment, or business needs to keep it comfortable and functioning properly (e.g. water, electricity, etc.)

Question 24

Variable Expense

Answer 24

A cost that appears irregularly or that changes in amount (e.g., utility bills)

Question 25

Wage

Answer 25

A set amount you are paid for every hour that you work; also called hourly pay.

Question 26

Wants

Answer 26

Expenses that help you live more comfortably.

Question 27

Wealth

Answer 27

A measurement of your assets (money you've saved or things of value you own) minus your liabilities (money you owe others); also called net worth.

Question 28

Zero-Based Budget

Answer 28

A budgeting method where every anticipated earning is assigned a role to be spent, saved, or invested somewhere, so there's no "leftover" money with no purpose.

Question 29

Depreciating Assets

Answer 29

Is an asset that loses or decreases in value. Example: Car/Automobile

Question 30

Appreciating Assets

Answer 30

Is an asset that gains or increases in value. Example: Real Estate

Question 31

Mortgage Escrow Accounts

Answer 31

are used to collect and pay 1) property taxes and 2) insurance payments on a home. Lenders want to make sure that your property is insured and that the taxes are paid on time, reducing the risk to the bank that you will default on the loan or incur liens on the property.

Question 32

Tax Lien

Answer 32

secures the government's interest in your property when you don't pay your tax debt. You can not refinance or sell before paying the Things you Consider when shopping for a mortgage a. Term – the amount of years (15yr./30 yr.) b. Type of Interest Variable Rate vs. Fixed Rate c. Interest Rate Shop around ​​Don’t believe what they say. ​​Ask for everything in writing. Tax Lien on your property.

Question 33

Amortization Table

Answer 33

An amortization schedule, often called an amortization table, spells out exactly what you'll be paying each month for your mortgage. The table will show your monthly payment, how much of it will go toward your loan's principal balance, and how much will go toward interest. It basically shows how much in principal and interest is paid overtime.