Vocab
Outlines how a person’s or household’s income is allocated among their cumulative, monthly expenses
Budget
Ava is a salaried employee who earns $94,000 per year. She gets paid twice a month, and $945 is deducted from each paycheck for taxes and benefits.
Gross pay= $3,917
Net pay= $2,972
Which personal financial management characteristic can protect individuals from risk by spreading their money among various avenues?
Investing
What must an employee fill out prior to receiving compensation from their employer?
W-4
official government forms that an individual or married couple submits to a federal, state or local agency
Income Tax Returns
Jordan is a part-time hourly employee who earns $28.75 per hour. He works 25 hours each week and gets paid weekly. $138 is deducted from each paycheck for taxes and insurance.
Gross pay= $719
Net pay= $581
Personal finance requires proper management to be successful.
True
What deduction is mandatory and taken out of most employees’ paychecks by law?
Federal income tax
employee’s total earnings before taxes, withholdings and deductions
Gross Pay
Darius is a salaried employee and earns $96,000 per year. He gets paid once a month, and $1,925 is deducted from each paycheck for taxes and insurance.
Gross pay = $8,000
Net pay = $6,075
Which of the following is considered the starting point of managing personal finance?
Income
401(k)s are payroll taxes issued by states, counties or municipalities and deducted to fund public services.
False
money a person receives for work or investments on a regular basis
Income
Elena is a salaried employee and earns $92,400 per year. She gets paid twice a month, and $1,125 is deducted from each of her paychecks for taxes and insurance.
Gross pay = $3,850
Net pay = $2,725
Which personal financial strategy helps individuals prepare for unexpected expenses by setting aside money regularly?
Emergency savings fund
401(k)s are payroll taxes issued by states, counties or municipalities and deducted to fund public services.
False
documents completed by employees for their employers which inform the employer about the correct amount to withhold from the employee’s pay in accordance with the federal income tax
W-4s
Liam is a part-time salaried employee and earns $38,280 per year. He gets paid weekly (52 paychecks per year), and $142 is deducted from each paycheck for taxes and benefits.
Gross pay = $735
Net pay = $593
What are characteristics of personal financial management?
Investing
Savings
The equation for net pay is
gross pay - deductions = net pay