A cost that fluctuates from month to month, such as utilities or groceries

A set amount due every billing cycle

A tax withheld from your paycheck

A debt payment with a fixed interest rate

Gross pay is total earnings before deductions; net pay is the amount received after deductions

Gross pay is income after deductions; net pay is the total before deductions

Gross pay equals hourly rate only; net pay equals overtime only

Gross pay is taxed income; net pay is untaxed tips

Federal income tax

State income tax

Social Security (FICA)

Medicare (FICA)

Sales tax at stores

To cover unexpected expenses without going into debt

To increase credit card rewards points

To pay only routine fixed bills

To avoid paying taxes entirely

A mix of different asset types to spread risk

Investing all money in one stock to maximize gains

Keeping only cash in a savings account

Borrowing money to invest in a single company

They reflect borrowing reliability and influence loan approvals and interest rates

They determine how much tax you owe each year

They measure income for payroll calculations

They decide eligibility for public schooling

A bank charge assessed when a transaction exceeds your available balance and the bank covers the shortfall

A monthly maintenance fee for using an ATM network

A penalty for closing a bank account within the first 90 days

A fee charged only for late credit card payments

Help employees save for retirement with tax advantages

Provide short-term emergency loans from an employer

Pay for health insurance premiums directly from wages

Build a person’s credit history through installment payments

Provide everyday access to money for deposits, withdrawals, and payments

Invest funds in stocks and bonds for long-term growth

Hold money with withdrawal limits in exchange for higher interest

Extend credit to finance purchases over time

A credit card borrows from the issuer to be repaid later; a debit card pulls money directly from your checking account

A credit card can only be used online; a debit card can only be used in stores

A credit card always has lower interest rates than a debit card

A credit card requires a PIN; a debit card never uses a PIN

Interest calculated on both the original principal and the accumulated interest from prior periods

Interest calculated only on the original principal

A fee charged by banks for maintaining an account

A tax applied to investment earnings each year

Allocate 50% of income to needs, 30% to wants, and 20% to savings or debt repayment

Allocate 30% of income to needs, 50% to wants, and 20% to savings

Allocate 40% of income to needs, 40% to wants, and 20% to savings

Allocate 50% of income to savings, 30% to wants, and 20% to needs

A bull market features rising stock prices and optimism; a bear market features falling prices and pessimism

A bull market has low trading volume; a bear market has high trading volume

A bull market occurs only in summer; a bear market occurs only in winter

A bull market is government-regulated; a bear market is unregulated

300 to 850

0 to 100

200 to 700

500 to 1000

Federal loans are government-backed with fixed rates and borrower protections; private loans come from lenders with credit-based, often variable rates

Federal loans are only for graduate students; private loans are only for undergraduates

Federal loans must be repaid within one year; private loans never require repayment

Federal loans require a cosigner; private loans never allow cosigners

A need-based federal student loan where the government pays the interest while you’re in school and during eligible deferment periods

A federal student loan that is not based on financial need and accrues interest from the day it is disbursed

A private loan with variable rates that only accrues interest after graduation

A scholarship that never requires repayment and has no interest

A need-based loan where the government pays the interest while you’re in school

A federal student loan not based on financial need; interest accrues from disbursement and the borrower is responsible for all interest

A grant that does not require repayment and has no interest

A loan that only charges interest after graduation and only for high-income borrowers

ROI = (profit ÷ cost of investment) × 100%

ROI = (cost of investment ÷ profit) × 100%

ROI = revenue − cost

ROI = (cost ÷ revenue) × 100%

30%

25%

300%

3%

$13,850

$14,600

$12,950

$15,000

They increase taxable income and raise the tax owed

They reduce taxable income, which can lower the tax owed

They guarantee a tax refund regardless of income

They eliminate the need to file a tax return

When their total allowable itemized deductions exceed the standard deduction

When they want a faster refund regardless of deduction amounts

When their income is very low and they owe no tax

To avoid keeping receipts or records

A simple monthly interest rate that excludes compounding

The effective annual rate of return on an account, including the impact of compounding

A loan origination fee charged by banks on new accounts

A tax rate applied to investment income

The monthly interest rate on a loan, excluding fees

The Annual Percentage Rate, the yearly cost of borrowing including interest and fees

The total amount of money borrowed on a loan

A range used to categorize credit scores

Sticker price includes financial aid; net price is the cost before aid

Sticker price is the published cost before aid; net price is the actual cost after grants and scholarships

Sticker price covers room only; net price covers tuition only

Sticker price changes monthly; net price stays fixed for all students

The number of credit cards you own

The interest rate charged on your loans

The percentage of your available credit limit that you are currently using

Your total income reported for the year