economics: A Social Science
What are the four common attitudes toward money?
Avoidance, Vigilance, Worship, and Status
Martin owns a car worth $13,000. He still owes $7,000 to the bank on the loan. Calculate the net worth.
$6,000
This type of income is calculated BEFORE taxes are taken out.
Gross Income
This type of income does not change month to month.
Fixed income
What is cost of living?
How much it costs to live somewhere.
To have a healthy attitude toward money, we should view it as a _________.
Tool
This type of asset can be quickly and easily turned into cash.
Liquid assets
What are the four types of taxes that are taken out of most paychecks?
Federal, State, Medicare, Social Security
This type of income is unexpected or inconsistent.
Periodic income.
Why should you have insurance?
This type of shopping is irrational, illogical, unintentional, and often leads to regret.
Impulsive buying
What are the two payment terms taken into account when you take out a loan?
If Colby has 22.4% of his paycheck dedicated to income tax, what is his net income if he his gross income is $2,600?
$2,017.60
Why should you consider taxes when making a budget?
So you don't think you have more money than you actually do.
What is social security used for?
Assisting those that are retired, sick, disabled, or families of workers who have died.
What is on of the marketing strategies stores use to try and get you to spend more money?
Advertisements, sales/promotions, strategic placement of merchandise, and pricing.
What does it mean to be "car/house poor"?
You cannot afford to do anything except pay off your car/house loan.
What is Randall's gross income if he works 30 hours and makes $10.50 and hour?
$315
Your income and expenses.
Record Keeping
What four conditions are more likely to lead to poor financial decisions.
HALT, Hungry, Tired, Angry, Lonely
Why does investing money involve risk?
It could increase of decrease.
Landina worked 96 hours this month. She is paid $12/hour. Income tax takes 22% out of her paycheck. What is her NET income?
$1,013.76
What will happen if you keep having to dip into your savings every month?
You'll use it all and have to go into debt.
What three things can lead to a better income in the future?
Education, training, and experience.