Asked by Hjgkj
Answer the following question each in a 8th grade response. Two sentences each.
Keisha is filing taxes for the first time. Briefly explain to her the relationship between a W-2 form and a 1040
27. Many people are unbanked. Explain what being unbanked means and list at least two reasons that someone might be unbanked.
28. Pretend you make $500 worth of purchases on your credit card, your bill arrives saying your minimum payment due is $20, and you pay $20 before the due date. Describe how credit card interest works and what you can expect to happen next.
29. Give an example of a company that might check your credit report and describe why the information in it is important to them.
30. Sammy says, "I don't think it's fair that I have to pay for car insurance when I'm a super safe driver." Explain why this logic is flawed
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Keisha: A W-2 is a form your employer gives you that shows how much money you earned and how much tax was taken out of your pay. You use the numbers from the W-2 when you fill out your 1040 tax return to figure out if you owe more tax or will get a refund.
27. Being unbanked means a person does not have a checking or savings account at a bank or credit union. People might be unbanked because they don’t trust banks, can’t afford bank fees, or don’t have the ID or steady address banks require.
28. Credit card interest is charged on any balance you don’t pay off by the due date, so if you only pay the $20 minimum, interest will be added to the remaining $480. That means next month you’ll still owe most of the original amount plus interest, and it can take a long time and cost a lot to pay off the card if you keep paying only the minimum.
29. A landlord might check your credit report to see if you pay bills on time and how much debt you already have. This information helps them decide if you are likely to pay rent on time and be a low-risk tenant.
30. Sammy is wrong because insurance works by pooling many people’s payments so the cost of accidents is shared, not just paid by the person who has an accident. Even very safe drivers can get into accidents caused by others, so everyone pays to help cover those costs.
27. Being unbanked means a person does not have a checking or savings account at a bank or credit union. People might be unbanked because they don’t trust banks, can’t afford bank fees, or don’t have the ID or steady address banks require.
28. Credit card interest is charged on any balance you don’t pay off by the due date, so if you only pay the $20 minimum, interest will be added to the remaining $480. That means next month you’ll still owe most of the original amount plus interest, and it can take a long time and cost a lot to pay off the card if you keep paying only the minimum.
29. A landlord might check your credit report to see if you pay bills on time and how much debt you already have. This information helps them decide if you are likely to pay rent on time and be a low-risk tenant.
30. Sammy is wrong because insurance works by pooling many people’s payments so the cost of accidents is shared, not just paid by the person who has an accident. Even very safe drivers can get into accidents caused by others, so everyone pays to help cover those costs.
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