Vocabulary
What is income?
The money you earn at your job.
According to economists, what percentage of your income should you put into savings?
20%
Need or Want:
Internet
(You need to explain why to earn points).
Need (I guess you could say want, but in this day in age, there is a pretty strong argument for need).
If Angel's savings account principal starts out at $400 and he deposits $100 and he withdraws $50, what is his new principal?
$450
Billy makes $15 per hour. If he works 10 hours in a pay period, what will his GROSS income be?
$150
(15 x 10 = 150)
What are expenses?
The money you spend OR the things you spend money on.
According to economists, what percentage of your income should you put into needs?
50%
Need or Want:
A Maserati sports car
(Explain why to earn points).
Want
What do you need in order to open a checking account?
A form of ID and a proof of your address
Pablo receives a paycheck and his gross pay is $400. His net pay is $325. How much money did he have in deductions this pay period?
$75
What are utilities? AND Give an example.
Utilities are everything you need to run a comfortable home, such as gas, water, or electricity.
According to economists, what percentage of your income should you put into wants?
30%
Need vs. Want:
A next generation gaming PC
(You need to explain why to earn your points)
Want (Unless you are a professional gamer or designer)
You can cash a check without endorsing (or signing your name on) the back of it. True or false?
False
If Joanna works 10 hours a week for an hourly wage of $15 per hour, how much money will she earn in a month (let's assume the month is 4 weeks).
$600
10 x 15 = 150 per week
150 x 4 = 600 per month
What is discretionary spending?
It is money that the government chooses to spend on things such as education or military.
Why should you make a budget?
(Ms. Black will decide if your answer fits)
Need or Want:
Cell phone
(You must explain why to earn points)
Either answer could be right (depends on your explanation).
Describe a situation where you would file state income taxes in more than one state.
Answers may vary. You could move, working and living in both states in one year, you could own property in one state and work in another, etc.
If Guy gets a paycheck for $500 and he spends $100 on his phone bill, $15 on his Netflix, and $50 on gas, how much money does he have left over for his wants and savings?
$335
100 + 15 + 50 = 165
500 - 165 = 335
What is mandatory spending?
It is money the government has to spend on things such as medicare or social security.
Why should you pay yourself first?
Answers may vary.
(Ms. Black will decide if your answer works)
Need vs. Want
Food from the grocery store
Need
Unless you get an extension, by what date do you need to file your taxes?
April 15th
If Chucky earns a paycheck for $10,000 and he wants to put 20% in savings, how much money will he be saving?
$2,000
10,000 x 0.2 = 2,000