H&R Block Budget Challenge and Chapter 2 Test Already Passed

H&R Block Budget Challenge and Chapter 2 Test Already Passed Net Pay Amount of income left after taxes and deductions have been taken out. Gross Pay the total amount of an employee's earnings before deductions are taken out Deductible Amount you must pay before you begin receiving any benefits from your insurance company Prorate When you are charged only the amount you will use. For example, when moving into an apartment, you would not pay the full month's rent if you are moving in after the first of the month. You will pay for the number of days you will actually be living in the space. Interest A sum paid or charged for the use of money or for borrowing money Compound Interest interest earned on both the principal amount and any interest already earned Taxable Income the earnings on which tax must be paid; total income minus exemptions and deductions Grace Period the time between the billing date and the payment due date when no interest is charged Character Saving is an exercise in __________ Sinking Fund Saving money over time for a large purchase Overdraft Protection A system used by the bank to keep you from using more money than you have. If you do not have the correct amount in the account you are trying to use, it will be drafted from a linked account. Bounced Check a check that is not honored by a bank and is returned to the payee's bank due to nonsufficient funds nonsufficient funds situation in which the payer's account does not have enough money to cover the amount of the check 401k A retirement account offered through an employer, where an employee can contribute money from his or her paycheck before or after taxes. Good and Bad Is Interest Good or Bad? emergency fund, purchases, wealth building three reasons to save money 500 Dollars How much money should you have in an emergency fund during High School? 3-6 months of expenses How much money should be saved in your emergency fund once you have a full-time job. Marathon Wealth building is a ______ Large Purchases What should you use your sinking fund for? Discipline What is the key ingredient to building wealth? Emergency Fund First foundation of financial management Get out of debt Second foundation of financial management Pay cash for your car Third foundation of financial managment Pay cash for college Fourth foundation of financial management