1. Financial Literacy Taxes and Insurance

2. Banking Follow Up Checking Accounts: Emily, Jocelyn, Jarek Savings Accounts: Robert, Anastasia, Greg Money Markets & CD’s Sarah, Jonah, Alex

3. Taxes

4. What are the different types of taxes? Taxes on your Income Federal Taxes Federal Taxes State and Local Taxes State and Local Taxes FICA Taxes FICA Taxes Taxes on your Investment Gains Capital Gains Taxes Capital Gains Taxes

5. Video YouTube - Personal Income Taxes - A Visual Explanation YouTube - Personal Income Taxes - A Visual Explanation

6. Taxes on your Income If you earn money you owe certain taxes on that money. Money is withheld from your paycheck and automatically sent to the government for these taxes. You then file a tax return by April 15 of the next year to calculate your taxes and see if you’ve had enough withheld.

7. Taxes on your income This applies to Federal and State Taxes It does not apply to FICA Taxes FICA Taxes are taxes for: Social Security (6.2%) Social Security (6.2%) Medicare (1.45%) Medicare (1.45%)

8. The Federal Tax Return Form: 1040

12. In Plain English Income Taxable Income Deductions Federal Tax Antonio’s Salary: $43,000 Interest Earned on CD: $300 Total Income:$43,300 Standard Deduction:$5,650 Exemption Deduction:$3,650 Total Deductions:$9,300 Income – Deductions:$34,000 The first $8,375 is taxed at 10% $837 From $8,375 to $34,000 is taxed at 15% $3,844 Federal Tax: $4,681

13. In Plain English Federal Tax Federal Tax: $4,681 Federal Tax Withheld Federal Tax Withheld: $5,000 Refund or Amount Due Amount withheld – Federal Tax: Refund of $319

14. Examples Let’s review Antonio’s tax situation

15. Insurance

16. What is insurance? Definition: An agreement by which a company provides a guarantee of repayment for a specific loss in return for a customer’s payment of premium.

17. What is insurance? Basic Example: If you pay your monthly premium for your car insurance, when you get in an accident your insurance company will help fix your vehicle.

18. Different Types of Insurance Health Insurance: If you get sick and need to see a doctor, your health insurance will help you pay the cost. Car Insurance: If you get in a car accident, your car insurance will help fix your car. Home Insurance: If someone breaks into your house, your home insurance will help pay to replace the items that were stolen.

19. Different Types of Insurance Life Insurance: If you pass away, the insurance company will pay money to your family. Disability Insurance: If you become disabled and cannot work, the insurance company will pay money to you every month to help you pay bills.

20. Why is Insurance Important? If you drive a car… You are required to have insurance. If you own a home… You are required to have insurance. If you ever get sick… Not having health insurance is the # 1 cause of bankruptcy. If you are married, have kids, or in debt… Life Insurance can help replace the income that your family depends on, or help pay off debt that your loved ones would still have.

21. Car Insurance 6 Components of Car Insurance 1) Bodily Injury Liability 2) Property Damage Liability 3) Medical Payments 4) Collision 5) Comprehensive 6) Un/Underinsured Motorist

22. Homework