Basics Beginner: Making the Most of Your Paycheck

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1.
What type of earnings are paid on credit union savings accounts?
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Dividends. While banks pay interest, credit unions pay dividends.
2.
What is one kind of expense that can be paid for with pretax dollars through special spending plans through your employer?
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Medical bills. If your employer offers a health savings account or healthcare flexible spending account, you can save for medical expenses with pre-tax dollars.
3.
A payday loan is designed to _______.
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Tide you over until your next paycheck. A payday loan is set up to pay short-term bills and to be repaid with your next paycheck.
4.
What kinds of taxes are withheld from your paycheck to pay for future benefits?
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Medicare tax. The Medicare tax that is taken from your paycheck helps pay for the Medicare health insurance you will receive when you retire.
5.
To pay yourself first means to _______.
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Set aside money right away out of your paycheck. The idea is that your savings come first.
6.
When you choose direct deposit, your paycheck is _______.
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Electronically deposited to your bank account. When you choose direct deposit, your paycheck is deposited directly to your bank account.