INCOME & PAY
This type of pay stays the same no matter how many hours you work.
a salary
This is a plan for how money will be spent and saved.
a budget
This account is best for everyday spending, comes with a debit card, and earns little to no interest.
a checking account
What is it called when prices increase overtime and money that is not growing loses purchasing power
inflation
This is what a credit score measures.
how responsible you are with borrowing money
This type of pay goes up or down based on the number of hours you work.
an hourly wage
Under the 50/30/20 rule, this percentage of your income should go toward wants.
30%
List at least one major advantage a savings account has over a piggy bank
EXAMPLES: earning interest and being insured by the government up to $250,000
Compared to bonds, these investments carry higher risk but have higher growth potential.
stocks
What is one way you can lower your credit score?
EXAMPLE: missing payments on your credit card or loans
This is the total amount you earn BEFORE taxes and deductions are taken out.
gross pay
Under the 50/30/20 rule, someone earning $4,000 a month should put this dollar amount toward needs.
$2,000
This type of interest is earned only on the original amount you deposited.
simple interest
What is credit?
borrowing money now and paying it back later, usually with interest
What is one con of using credit?
EXAMPLE: interest costs money and debt can pile up if you overspend
This is the money you actually take home AFTER taxes and deductions.
net pay
Why do we have taxes?
so that everyone collectively funds services that the whole community uses and benefits from.
This type of interest is earned on both the original amount AND the interest already earned, making your money grow faster.
compound interest
What is the Great Depression an example of?
credit being dangerously overused
What is one pro of using credit?
EXAMPLE: having a safety net during unexpected emergencies
Hourly workers earn this type of extra pay at 1.5 times their normal rate after working more than 40 hours in a week.
overtime pay
List at least three things that are funded by local property taxes
EXAMPLES: public school teachers, local government buildings, buses in your community, snow removal, sidewalks and new roads, etc.
This savings option earns higher interest but you cannot withdraw the money for a set period of time.
Certificate of Deposit (CD)
This word means the chance that an investment could lose value.
risk
A credit score is a three-digit number that ranges from this low to this high
300-850