2. Gross Pay pay before deductions; may include insurance, taxes, etc pay before deductions; may include insurance, taxes, etc

3. Net Pay take-home pay after deductions; usually near 70-75% of gross pay take-home pay after deductions; usually near 70-75% of gross pay

4. Where should I put my $$$$$ bank accts, savings and loan associations, and credit unions offer: bank accts, savings and loan associations, and credit unions offer: 1. security of keeping $ in a safe, insured place 2. convenience of being able to withdraw $ when needed 3. advantage of earning extra $

5. 3 types of bank accounts Savings Savings Checking Checking Credit Credit

6. Savings Accounts holds $ and pays interest (payment in exchange for using your $ to make loans and investments) which depends on 4 factors : holds $ and pays interest (payment in exchange for using your $ to make loans and investments) which depends on 4 factors :

7. Principal amt $ in acct; minimum balance amt $ in acct; minimum balance

8. Interest Rate relatively low; can earn more through other investments which require more $ and certain periods of time like CDs or gov’t savings bonds relatively low; can earn more through other investments which require more $ and certain periods of time like CDs or gov’t savings bonds

9. Time how long $ is in acct how long $ is in acct

10. How often interest is paid yearly, quarterly yearly, quarterly compound interest - $ earned on principal plus previous interest compound interest - $ earned on principal plus previous interest

11. Checking account acct that holds $ and allows you to pay for things by writing checks rather than using cash; help you keep track of your expenses and income acct that holds $ and allows you to pay for things by writing checks rather than using cash; help you keep track of your expenses and income *may have minimum balance, monthly service fee, fee for checks written *may have minimum balance, monthly service fee, fee for checks written

12. Credit arrangement by which you receive $, goods, services now & pay later arrangement by which you receive $, goods, services now & pay later real cost is purchase price plus interest real cost is purchase price plus interest $200 AT 1.5%/mo (APR)18%/yr becomes$3/mos$36/yr$236 pay $ for using credit pay $ for using credit costly if take a long time to repay costly if take a long time to repay grace period - time in which $ can be repaid w/o finance charge grace period - time in which $ can be repaid w/o finance charge

13. Loan credit borrowing $ from bank(loan, credit card) borrowing $ from bank(loan, credit card) co-signer - person agrees to makes payments if other fails

14. Sales Credit charge acct at store; credit limit charge acct at store; credit limit

15. * use credit for emergencies * use credit for emergencies *avoid using credit for wants *avoid using credit for wants *use for expensive purchases that have a long life *use for expensive purchases that have a long life *pay off during grace period *pay off during grace period *make payments on time *make payments on time *shop for credit cards to get lowest APR (annual percentage rate) *shop for credit cards to get lowest APR (annual percentage rate)

16. Credit Rating person’s record of paying debts in the past and sent to a credit bureau; person’s record of paying debts in the past and sent to a credit bureau; if you always use cash will never have a credit rating if you always use cash will never have a credit rating improve credit ratings by owning a home or car, having the same job for several years, living in one place for several years, earning high income improve credit ratings by owning a home or car, having the same job for several years, living in one place for several years, earning high income

17. Suppose you are buying a new guitar, which costs $450. If you buy the guitar using the store’s layaway, you will have to pay $60 up front plus $65/mo for 6 mos. If you buy it using a credit card and pay it off over the same 7 mos, it will cost you $70/mo. Which plan would you choose? How much more would charging cost? The Hoffmeyers took out a loan of $5000 to renovate their house. They have to repay the loan in 36 monthly payments of $168.47. How much are the Hoffmeyers paying in finance charges?

18. Leasing rent w/ large down payment; buyout option rent w/ large down payment; buyout option