Everfi Overview

By: Alec Miller

Taxes and Insurance

Taxes -

  • Taxes pay for government programs
  • Types of taxes include Property, Federal Income, State Income, Sales,
  • Taxes pay for things like highways, roads, and schools
  • Taxes are due by April 15th every year
  • Every adult is required to fill out a W4, W2, and a 1040 tax form
  • Property Tax - taxes an owner pays on the value of any owned property
  • Sales Tax - a percentage is taxed on the price you pay for an item
  • State Income Tax - a tax that the state puts on your income
  • Federal Income Tax - a tax that the Federal Government puts on your income
Insurance -

  • Insurance allows a person to transfer its risk onto someone else
  • There are 3 main insurance forms - Health, Auto, and Homeowners
  • Every person that owns a car is required to have auto insurance on that vehicle
  • There are 4 parts to an Insurance Policy - Claim, Deductible, Coverage, and Premium
  • Claim - is a request you make to your insurance company for payment of the benefits allowed by your coverage
  • Deductible- the amount you are required to pay on each claim you file before the insurance starts paying
  • Coverage- the range of protection you are eligible to receive from an insurance plan
  • Premium- the amount you pay to have insurance for a specific time

Banking

Banking -

  • There are 3 types of banks
  • The 3 types of bank include Commercial Bank, Retail Bank, and a Credit Union
  • Commercial Banks deal mostly with deposits and loans from corporations and large businesses
  • Retail Banks deal directly with individuals and small businesses
  • Credit Unions are cooperative banks that are privately owned and controlled by the members, they provide credit at low rates for members
  • There are 3 account types Checking, Savings, and CDs
  • Checking accounts is a deposit account held at a bank or other financial institution for the purpose of securely and quickly providing providing frequent access to funds on demand.
  • Savings accounts are safe places to save money that gains interest.
  • CDs are deposits that are held by your bank for a specific, fixed period of time
  • It is important to keep your accounts balanced, which means keeping track of the money you withdraw and deposit from your account.
  • The Federal Reserve also plays a huge role in banking. The Federal Reserve is the Central Banking System of the United States composed of the Board of Governors, the FOMC, and 12 regional Federal Reserve Banks.
  • If you are in the process in choosing a place to bank, make sure they are a member of the FDIC.
  • The FDIC stands for the Federal Deposit Insurance Corporation, this corporation protects the money of peoples bank accounts

Consumer Fraud

Consumer Fraud -

  • There are many ways Consumer Fraud can be committed.
  • Thefts can hack your accounts you have or they can simply find out your personal information.
  • It is always important to never give out your personal information.
  • Personal information includes address, full name, social security number, account numbers, ect.
  • Fair Credit Report Act - Mandates the the information in your credit report is accurate, complete and private
  • Federal Trade Commission - A U.S. Government Agency that regulates consumers against false advertising and other unfair business practices
  • Social Security Number- A 9-digit number issued to U.S. citizens and permanent residents that is used as a primary form of identification by the government. Each individual has his or her own unique number.
  • Fair Debit Collection Practices Act - Aims at doing away with abusive and deceptive practices by those who collect debt.
  • Truth-in Lending Acts - Requires that individuals and businesses extending credit, like your credit card company, reveal all the terms and costs that are attached to it.
  • These acts are all ways to protect from Consumer Fraud.
  • Credit Report- a document supplied by a bank or other financial agency that summarizes a persons credit history.