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Social Justice Opening Unit
Consumer EducationConsumer EducationBanking2Bank a financial business thus, its 1st goal is to make profit
makes profit by creating loans and charging interest
uses depositors money to create loans for others.3Savings an account for saving money
withdraw, deposit and use an ATM card
pays small rate of interest4Checking a money managing account
writing, depositing and cashing checks
direct deposit and automatic withdrawal
ATM / debit card
usually does not pay interest
Check a paper certificate that allows funds to be transferred from one checking account to another
Interest a percentage charged on borrowed money
people with better credit scores will be charged less interest
Debit / Checking Card a card that electronically does the same as a check
FDIC Federal Depositors Insurance Corporation
U.S. gov. insures all bank deposits up to $250,000.
Consumer EducationTaxesPurpose of TaxesProvides revenue to govnt to pay for govt provided servicesFixing roads, bridges, dams, etc.Paying for schools, public education, community colleges, etc.Safety net servicesLink cardsWelfareSubsidized housing (Section 8, CHA, etc.)Social SecurityMedicare / MedicaidDepartment of DefensePays govt employeesElected officialsGovt dept staffMilitaryPostal ServiceTaxes Required payment to the government12Types of Taxes Sales Tax (IL and Chicago Revenue)
Income Tax (U.S. and IL Revenue)
Property Tax (Cook County Revenue)13Types of Tax Rates Proportional: everyone is charged the same percent regardless of income (IL income tax)
Progressive: greater your income, higher your percent rate; the ability-to-pay principle (federal income tax)
Regressive: flat rate, but takes a larger proportion from those with lower-incomes (Chicago sales tax)14Federal Income Tax BracketsFrom $0 - $8,350 = 10%
From $8,351 - $33,950 = 15%
From $33,951 $82,250 = 25%
From $82,251 $171,550 = 28%
From $171,551 - $372, 950 = 33%
From $372,951 and above = 35%Consumer EducationCreditCredit access to borrowed money17Some Types of Credit car loans (car note)
mortgages
student loans
retail loans
credit cards18Important Terms re. Credit Internet Rate: the percentage charged on the money borrowed
Credit Score: represents your reputation when it come to borrowing money
good credit: good access to borrowed money
bad credit: bad access to borrowed money19
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