By: Alec Miller
Taxes and Insurance
- 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 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
- 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 -
- 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.