Tax
income tax
money earned or received
Standard of Living
Standard of living describes how well you live. Depending upon where you live, you may have a higher or lower standard of living because costs vary from place to place. You may have different ideas about what "living well" is, depending on your stage of life.
gross income
the total amount of personal income prior to taxes and deductions
In the early 20th century, it was not uncommon to hear recommendations of keeping your money under a mattress instead of at a bank. Why or why wouldn't this be good advice today?
This would not be good advice today. FDIC-insured banks protect against losing money in case of a bank failure. Money lost or stolen from your home has no protection.
What would happen to the value of a dollar if everyone were a millionaire?
The value of a dollar would decrease.
net income
the income that remains after taxes and other deductions are taken from an individual's gross income
Two types of housing expenses are?
rent
mortgage and utilities
List four ways to earn an income.
Employment; self-employment; investment; business ownership
The illegal use of another person's identifying information for personal gain.
What is identity theft
Deflation
occurs when the purchasing power of money increases. A shortage of money in circulation will cause deflation, and prices will go down as a result.
the amount of money that a company withholds from its employees for the federal government as required by law
payroll tax
What are utilities? List three utilities that you may pays for each month.
water, gas, oil, electricity, cable, Internet, or telephone.
What is the median in the set {1, 10, 35, 87, 102, 598, 612}
The median is 87.
What are the four services that financial institutions are organized around?
Financial institutions are organized around the services of depositing, saving, loaning, and investing money.
Extra money given to an employee by a customer, usually for good service.
tip
property tax
the amount of money collected on the value of a property for the local government as required by law
the amount of money spent
expenditure
List the academic degrees in order, from shortest to longest to complete.
Associate degree, bachelor's degree, master's degree, doctorate (PhD)
The placing of capital, money intended for growth, into a particular growth option is called
An investment
How can you use hourly wage to calculate total pay for a project?
Multiply the total hours you worked by your hourly wage.
2 members of the team must answer 2 true or false questions to get the points
True or False? All else being equal, someone who makes $50,000 a year will pay the same amount in taxes as someone who makes $34,000 a year.
True or False? Even if you're not exempt from federal income tax withholding, your employer can choose not to withhold federal income taxes from your salary.
What is the general rule of thumb for how much income to spend on housing? If you make $63,000 a year, what is the maximum amount you should spend on rent?
It is recommended that you spend a maximum of 25% of your income on housing.
If you make $63,000 per year, you should spend no more than $63,000 divided by 4, or $15,750 per year on rent ($1312.50 per month).
Describe how education and income are related.
Generally speaking, the more education you have, the more money you make.
Financial Literacy
The set of skills and knowledge needed to make informed decisions about money matters.
Fill in the blanks. Inflation values ___________ while deflation values _____________. If the economy goes through consecutive periods of deflation, the economy is in a ______________.