Financial Literacy 1
A financial institution that accepts deposits from the public.
A Bank
Name the different forms of taxes collected in the United States. (hint - there are 3 different types).
1) Income tax
2) Sales tax
3) Property tax
1) Money that we receive in exchange for work or investments.
2) Things that one spends money on.
3) An estimate or plan to manage income and expenses over a set period.
1) Income
2) Expenses
3) Budget
the income that remains after taxes and other deductions are taken from an individual's gross income
If Sofia earned $250 but took home $192. What were her total deductions?
$58
A thing that is borrowed, especially a sum of money that is expected to be paid back in interest.
Suppose you have $100 dollars in a savings account earning 2% interest a year. After 5 years, how much money would you have?
A. More than $102
B. Exactly $102
C. Less than $102
A. More than $102
$100x.02x5=$10
1) Purchasing a new backpack for school (expense or income)
2) Getting a weekly $35 allowance for doing chores around the house (expense or income)
3) Buying Regino's pizza for $5.00 for lunch (expense or income)
1) expense
2) income
3) expense
If Santiago bought a football that cost $21.50 but ended up paying $23.43, what kind of tax did he pay?
Sales Tax
Noah is the owner of the indoor soccer building. What kind of tax will he need to pay the government?
Property Tax
A card issued by the bank that allows the holder to transfer money electronically to another account when making a purchase.
Debit Card
Aran really wants the new PS5, which costs $500. Aran has $200.00 in his Bank of Walsh. However, he just received a credit card with a $1000 limit. Should Aran use his credit card to buy a PS5? Why or why not?
NO! Aran should not use his credit card because he does not have enough money in his checking account to pay off his credit card bill. He will end up paying interest on the outstanding balance owing on his credit card.
What do you need to consider when making a budget? (hint - 3 things)
1) How much we earn each week or month (income)
2) What are our expenses are
3) What we need and what we want
What is the total amount of personal income prior to or before taxes and deductions?
Gross income
The money a person makes from their job.
Income
I have enough money to pay the balance of my credit card, but I just pay the minimum monthly payment. Is that the best financial decision? True or False
False
Paying the minimum amount is not the best decision. A person is charged interest when their credit card balance is not at 0 by the end of the month.
What does it mean to have a balanced budget?
Income is greater than or equal to expenses.
What is one way to keep track or record of all income and expenses?
Ledger
Electronic accounting software
Bank App
Rosalie works for Amazon. What kind of taxes does Rosalie need to pay for being an employee?
Income Tax
Give an example of goods and services. (1 for each)
Goods are items that are usually (but not always) tangible.
Services are activities provided by other people.
What should your credit card balance be by the end of the month?
It should be $0.00 by the end of the month.
What is one way to balance an unbalanced budget?
This tax is the amount of money that a company withholds from its employees for the federal government as required by law.
Payroll Tax