Gross/Net Pay
Describe the difference between Gross Pay and Net Pay
Gross pay is BEFORE deductions and Net pay is AFTER deductions.
What does FICA represent on a paystub?
Medicare (1.45%) and Social Security (6.2%)
Describe the difference between needs versus wants.
Needs are things you CANNOT live without and meant for survival.
Wants are things you CAN live without.
What is a credit score used for?
To determine a persons capability to borrow money and pay it back.
What is a consumer and consumer debt?
Anyone who buys goods and services is a consumer.
Consumer debt is anyone who borrows money.
Julie gets paid $12 an hour, she works 38 hours for week 1 and 22 hours for week 2. How much is her gross pay for the two weeks?
$720.00
What is the difference between a mandatory deduction and a voluntary deduction?
Mandatory deductions are things you have to pay like taxes.
Voluntary deductions are things you choose to pay like health insurance or 401k.
How do you calculate a specific percentage of your budget?
Ex: $3,000 monthly budget, what is the percentage of housing if my rent is $1,150 a month?
Part / Whole
$1,150/$3,000=0.38 * 100 = 38%
What factors go into determining your credit score? (List them from HIGHEST impact to LOWEST impact)
Payment History (35%)
Balance Utilized (30%)
Credit Age (15%)
Mix of Credit (10%)
Hard inquiries (10%)
List and describe the three methods to choose from when paying off debt.
Snowball method - pay off your smallest balances first
Avalanche method - pay off your highest interest debt first
Consolidation method - Combining multiple debts into one payment with one interest rate. DOESN'T ALWAYS SAVE YOU MONEY.
What is the difference between time and a half and double time?
Time and a half = Regular $pay rate * 1.5
Double time = Regular $pay rate * 2
How many checks will you receive in a year given each scenario below:
Monthly-
Bi-weekly-
Weekly-
Monthly- 12
Bi-weekly- 26
Weekly- 52
Describe a budget surplus, a budget deficit, and a balanced budget.
Budget surplus = expenses is less than your income
Budget deficit = expenses are more than your income
Balanced budget= expenses are equal to your income
Describe the terms below:
Payday loan
Cosigner
Secured loan
Payday loan is short term with high interest rates and must be avoided at all cost!!
Cosigner is someone with good credit that can help you sign for a loan.
Secured loan is backed by the property due to collateral being offered like a house or a car.
How do you calculate the unit price?
Ex.) You purchase 3 lbs of bananas for $2.39. How much are you paying per pound?
How much it cost $ / Amount you are buying (quantity)
What to break it down to a unit rate how much you pay for 1 "unit"
$2.39 / 3 = $0.80
You earn $17 an hour at Walmart and work 40 hours a week. If you pay 1.45% to Medicare, 6.2% to SS, and $81.60 for taxes, what is your net pay after your total deductions for the pay period?
$546.38
How do you calculate your gross pay?
Regular pay rate * Number of hours worked
Explain the difference between fixed versus variable.
Fixed means it does not change and stays the same. While variable means it changes.
Define the below terms:
Principal -
Interest -
Rate -
Term -
Principal - The original amount you borrow (P)
Interest - The extra amount you have to pay on a loan (I)
Rate - percentage used to determine how much interest to accrue (r)
Term - length of time on the loan (t)
What happens if you just make the minimum payment each month on your credit card?
You will eventually pay it off but will owe MORE in interest.
Janet Henderson is a secretary. She works Monday through Friday every week and gets time and a half for all hours worked over 40. If she worked a total of 44.5 hours this week, and her regular pay is $11.50 per hour.
11.50*1.5=17.25
11.50*40=460
17.25*4.5=77.63
460+77.63=$537.63
Mike earns an annual salary of $35,000, Calculate the amount of Mike’s paycheck for each scenario below:
Monthly-
Bi-weekly-
Weekly-
Monthly- $2,916.67
Bi-weekly- $1,346.15
Weekly- $673.08
How do I find the average of a group of numbers? Show example.
Add them up and divide by how many numbers you added together.
1+2+3 / 3 = 2
Calculate the two problems below:
1) Mr. Perkins has $1,400 in a savings account. The simple interest rate is 4% per year. How much total will he have in the account in 3 years?
2) Determine the final account balance of an investment if $500 is invested at an interest rate of 5.75% compounded annually for 20 years.
1) $1,568
2) $1,529.60
What is Inflation?
Inflation is the INCREASE in prices of goods and services overtime.