FACS 350 Final Exam -Liberty University

What 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.