Wants/Needs
A purchase you make for fun or entertainment
Want
Variable Expenses
Money you make from working a job and getting paid a wage
Earned Income
The money taken out of a paycheck
Deductions
When someone is hired to do a job and paid a consistent amount each hour
Hourly Pay
A purchase you have no choice but to make
A Need
Things you buy that cost the same every month
Fixed Expenses
Money you make from investing money in something else
Unearned Income
The money taken out of a paycheck for taxes
Mandatory Deductions
When someone is paid a consistent amount each week, regardless of the exact amount of hours they work
Salaried income
Gas, groceries, insurance
Need
Rent is a ______ expense
Fixed
Money the government gives to assist the poor, elderly, or sick, who cannot work
Government Benefits
The total amount of money someone makes after deductions
Net Pay
When a salesman makes a sale and gets to keep 10% of the sale price
Commission
Movies, video games, dining out
Want
Groceries is a __________ expense
Variable
Money made from the sale of stocks or bonds
Capital gains
The money on a paycheck before any deductions are taken out
Gross pay
The difference between the value a boss pays someone and the amount they make in profit from that person's work
Surplus Value
Something you have to buy that costs the same amount each month
A fixed need
Insurance is a fixed or variable expense?
Fixed
The price someone pays for taking out a loan
Interest
The money taken out of your paycheck to pay for medical insurance for the elderly
Social Security
The thing that creates value
Labor