Ways to Earn Money
This is the employee’s total pay before deductions.
What is gross pay?
This is the final calculated amount of a paycheck after federal taxes, FICA taxes, and state taxes are withheld; it is also called take-home pay.
What is net pay?
This is defined as anything owned that is of value.
What is an asset?
This plastic card is linked to a checking account and gives the account holder access to the money in that account.
What is a debit card?
This word describes an activity that is of value.
What is a service?
This practice involves trading items other than money.
What is bartering?
This tax is a percentage of the employee’s gross pay that is withheld from each paycheck, contributing to retirement and disability benefits and health insurance for people over 65.
What is FICA tax?
This form summarizes an employee’s earnings and the amounts withheld from the employee’s paychecks for the year.
What is a W-2 form?
This is the process by which a person confirms each transaction on a statement against their own records to verify that the account holder and the bank agree on the balance.
What is to reconcile?
This is an offer to pay back a portion of the money a customer spent on an item.
What is a rebate?
This pay structure divides the month into two pay periods, often placing payday at the middle and the end of the month.
What is a semimonthly pay period?
This is the number of dependents a person claims on their W-4 form.
What is a withholding allowance?
This value is calculated as gross income minus selected government-approved deductions.
What is adjusted gross income (AGI)?
Daily Double!
This is the initial amount of a deposit or loan.
This shopping practice involves finding the price of an item at two or more stores.
What is comparison shopping?
This is a person who starts a business venture and assumes the risk of its success or failure.
What is an entrepreneur?
This is a tax structure where the more a person makes, the higher the rate of taxation.
What is a progressive tax?
This is the profit that results from selling something for more than the buyer paid.
What is a capital gain?
This type of interest is calculated on the principal and accumulated interest.
What is compound interest?
This is an agreement where the total amount owed is made in payments over time.
What is an installment plan?
This is income that is not derived from a person’s work.
What is unearned income?
These are things of value that are offered or provided to employees in addition to wages; they are also called fringe benefits.
What are employee benefits?
This specific type of profit comes from the sale of an asset that was held for more than a year.
What is a long-term capital gain?
This method is used to estimate how long it will take to double an amount of money.
What is the Rule of 72?
This is a guarantee that the item purchased will perform to a certain standard or be free of defects for a specified period of time.
What is a warranty?