Key Terms
___________ is money you make from working at your job.
Earned Income
It’s a good idea to ______ while you save up money for a down payment on a house.
rent
Which form is used to calculate how much income tax is withheld from your pay?
W4
Every American who earns an income must file a _________ each year.
Federal Tax Return
__________ Income: Money you actually take home
Net
Another word used for “renting” is:
"leasing"
An ______ is when the IRS reviews your tax documents to make sure you reported them correctly.
audit
What federal payroll tax goes toward Social Security and Medicare?
FICA
There are two general types of taxes. Taxes on the money you _________ and taxes on the money you ___________.
Earn, Spend
__________ Skills: Personal attributes that enhance workplace performance
Soft
a one-year period that governments or companies use for financial reporting
Fiscal Year
FICA includes social security and________ taxes.
medicare
What percentage of their income should a self-employed person set aside for taxes?
25-30%
A house is an asset that typically will ________ value over time.
Increase
What is the 4th Foundation?
Pay Cash for College !
the amount you earn before taxes and other payroll deductions
Gross income
A 401(k) and an IRA are not __________. They are a tax-advantage bucket to put investments into.
investments
Whether you rent an apartment or buy a house, try to keep your monthly payment below % of your take-home pay
25
____________ is the process of figuring out how much money you'll need in retirement and creating a plan to get there.
Retirement Planning
The Third Foundation is :
Pay cash for your car.
when someone spends so much of their income on the costs of homeownership that they struggle to reach other financial goals
House Poor
A ______ 401(k) or IRA grows tax-free
Roth
The best type of mortgage is a __________________?
15-year fixed-rate conventional mortgage .
Economics is a study of consumer ______.
Choices
Economics is a study of consumer _________.
Choices