UGBA 135
1. Rule of 72: 72/interest rate = time it takes to double wealth
2. What is compounding: interest on interest
3. Cornerstone of wealth is being frugal
4. Before you start saving money, you should:
a. attack high interest debt like credit cards
b. Do everything you can to maximize employer 401k match
5. You always need consideration with a contract
a. All blanks filled in with signatures and dates
6. Difference between revenue/sales, earnings, and income
a. Revenue = All money coming in before any expenses/taxes
b. Earnings = Net gain after expenses are deducted
c. Income = combination of revenue and unearned income
7. Interest rate on federal loans will change on July 1st and go down
a. Grad students have to pay more than undergrads
8. Retirement is no longer the problem, longevity is
9. Paychecks don’t come with instructions; you need to figure out how much you’ll take
home
10. Rule of Fred: I get paid first
11. Most important aspect of a credit score is paying on time all the time
12. Names of 3 main credit agencies: Experian, Equifax, TransUnion
13. Variable vs. go-to rate of interest
a. Variable: interest rate that moves up and down based upon a benchmark not
controlled by the lender
b. Go-to: interest rate charged on unpaid credit card balances in addition to the
variable rate, determines total interest rate
14. What is a late penalty for? Fee for not making a minimum payment on time
15. If you’re the victim of credit card theft, what’s the first thing you should do? Contact all 3
credit bureaus
16. Paragraphs in the book on prepaid cards
a. Offered by banks and nonbanks, a way to provide those without bank accounts
with a secure line of credit
b. High activation fees (up to $39.95)
c. Inactivity fees
d. Fees to load money onto the card
17. Minimum criteria to generate a credit report/score:
a. At least 6 months of history including:
i. 1 reported account that has been open for at least 6 months
, ii. 1 account that has been reported by a lender in the last 6 months
iii. Nothing that indicates you’re deceased
18. Legal limit on interest on credit card balances: NONE
19. You have to change your credit report to change your credit score
a. If you fall behind more than 60 days on student loans it will be on your credit
report
20. Credit card act - apply only to consumer credit cards, not business credit cards
a. No interest increases for the first year unless an introductory rate has come to an
end, you are more than 60 days late on a payment, or you are on a variable
interest rate tied to an index
b. Card holder must be notified 45 days in advance of any interest rate change
c. Issuer may charge a default rate (28%-35%) if you are more than 60 days late on a
payment, but if you’re on time for the next 6 months, they have to restore your
original rate
d. Interest rate increases can only be applied to new charges for an account in good
standing
e. Promotional interest rate periods must last at least 6 months
f. Overdraft fees cannot be charged unless the cardholder agrees to allow them
21. Who pays for social security? Employers and workers
22. 3 parts of medicare - who pays for part a, b, and d?
a. A: financed by a 2.9% payroll tax on all earned income paid by all workers with
no salary cap (1.45% by employer, 1.45% by employee)
b. B: financed by monthly premiums paid by the insured, range from
$134-$428/month, paid directly or deducted from social security checks
c. D: financed 25% by monthly premiums from the insured and 75% by taxes
optional/means tested, prescription drug plan provided only by private insurance
companies
d. 2 (B/D) are means-tested: the amount you pay depends on your income level, but
everyone gets the same coverage
23. Who’s eligible to collect social security and medicare?
a. Age of eligibility: 65
b. Are social security benefits taxable? Sometimes, if people make more than the
base amounts when combining half of social security income with other income
i. $25,000 for single heads of household
ii. $32,000 if married filing jointly
iii. $0 for married couple filing separately
c. Financed by a 12.4% payroll tax, 6.4% by employer, 6.4% by employee
1. Rule of 72: 72/interest rate = time it takes to double wealth
2. What is compounding: interest on interest
3. Cornerstone of wealth is being frugal
4. Before you start saving money, you should:
a. attack high interest debt like credit cards
b. Do everything you can to maximize employer 401k match
5. You always need consideration with a contract
a. All blanks filled in with signatures and dates
6. Difference between revenue/sales, earnings, and income
a. Revenue = All money coming in before any expenses/taxes
b. Earnings = Net gain after expenses are deducted
c. Income = combination of revenue and unearned income
7. Interest rate on federal loans will change on July 1st and go down
a. Grad students have to pay more than undergrads
8. Retirement is no longer the problem, longevity is
9. Paychecks don’t come with instructions; you need to figure out how much you’ll take
home
10. Rule of Fred: I get paid first
11. Most important aspect of a credit score is paying on time all the time
12. Names of 3 main credit agencies: Experian, Equifax, TransUnion
13. Variable vs. go-to rate of interest
a. Variable: interest rate that moves up and down based upon a benchmark not
controlled by the lender
b. Go-to: interest rate charged on unpaid credit card balances in addition to the
variable rate, determines total interest rate
14. What is a late penalty for? Fee for not making a minimum payment on time
15. If you’re the victim of credit card theft, what’s the first thing you should do? Contact all 3
credit bureaus
16. Paragraphs in the book on prepaid cards
a. Offered by banks and nonbanks, a way to provide those without bank accounts
with a secure line of credit
b. High activation fees (up to $39.95)
c. Inactivity fees
d. Fees to load money onto the card
17. Minimum criteria to generate a credit report/score:
a. At least 6 months of history including:
i. 1 reported account that has been open for at least 6 months
, ii. 1 account that has been reported by a lender in the last 6 months
iii. Nothing that indicates you’re deceased
18. Legal limit on interest on credit card balances: NONE
19. You have to change your credit report to change your credit score
a. If you fall behind more than 60 days on student loans it will be on your credit
report
20. Credit card act - apply only to consumer credit cards, not business credit cards
a. No interest increases for the first year unless an introductory rate has come to an
end, you are more than 60 days late on a payment, or you are on a variable
interest rate tied to an index
b. Card holder must be notified 45 days in advance of any interest rate change
c. Issuer may charge a default rate (28%-35%) if you are more than 60 days late on a
payment, but if you’re on time for the next 6 months, they have to restore your
original rate
d. Interest rate increases can only be applied to new charges for an account in good
standing
e. Promotional interest rate periods must last at least 6 months
f. Overdraft fees cannot be charged unless the cardholder agrees to allow them
21. Who pays for social security? Employers and workers
22. 3 parts of medicare - who pays for part a, b, and d?
a. A: financed by a 2.9% payroll tax on all earned income paid by all workers with
no salary cap (1.45% by employer, 1.45% by employee)
b. B: financed by monthly premiums paid by the insured, range from
$134-$428/month, paid directly or deducted from social security checks
c. D: financed 25% by monthly premiums from the insured and 75% by taxes
optional/means tested, prescription drug plan provided only by private insurance
companies
d. 2 (B/D) are means-tested: the amount you pay depends on your income level, but
everyone gets the same coverage
23. Who’s eligible to collect social security and medicare?
a. Age of eligibility: 65
b. Are social security benefits taxable? Sometimes, if people make more than the
base amounts when combining half of social security income with other income
i. $25,000 for single heads of household
ii. $32,000 if married filing jointly
iii. $0 for married couple filing separately
c. Financed by a 12.4% payroll tax, 6.4% by employer, 6.4% by employee
