Income
Describe the difference between gross income and net income.
Gross income is the amount of money a person earns before deductions and net is the amount of money a person earns after deductions, also known as take home pay.
What does PYF stand for? What does it mean?
Pay Yourself First. It means to save money.
What is the main difference between a bank and a credit union?
Banks are for profit institutions and credit unions are non-profit.
What is a budget? Why is a budget important?
A record of income and expenses. Budgets help individuals prioritize spending, distinguish between wants and needs, and achieve short and long term goals.
When is career planning done?
Throughout a lifetime
What are the three main types of taxes?
Property, income and sales tax
When investing money, what is the name for the initial amount deposited in the bank or other investment institution?
Principle.
What is the main difference between credit and debit?
List five categories that should be included in a budget.
Tithing, Savings, Utility bills, Rent, Transportation, Entertainment, Phone bills, etc.
We looked at groupings of jobs in class. These categories or job groupings are known as what?
Career Clusters
Name at least three things that taxes are used for.
National debt, support government, veternas affiars, law enforcement, social programs, parks and rec, schools, libraries, improve infrastructure.
DAILY DOUBLE! What are the equations for both simple interest and compound interest?
Simple: I=Prt
Compound: A=P(1+r)^t
What are the three types of financial institutions?
Banks, Credit Unions, Online Banks
What is an expenditure?
Money that is spent on goods, services, and bills.
What is the difference between a wage and a salary?
A wage is the amount of income a person earns expressed as an hourly amount. A salary is the amount a person earns expressed as a yearly amount.
Describe/ Define:
1. Abilities
2. Aptitudes
3. Values
4 Interests
Abilities: Something a person does well. Can be developed and worked on.
Aptitude: Natural talents that a person is often born with.
Value: Something that is important to a person. Traits, characteristics, workplace situations etc.
Interests: Things that a person enjoys doing and brings an individual fulfillment.
Calculate the amount of simple interest using the following:
P= $789
r= 7.5%
t= 10 years
$591.75
Name at least four things that a person should look for when choosing a financial institution.
Interest Rates
Customer Service and reliability
Minimum deposit amounts
Safety and convenience
Low fees for checking and debit accounts
What is discretionary income?
Money available to spend on non-essential things. Income that you can choose how to spend.
Name the Seven Principles for Financial Success from the Church of Jesus Christ of Latter-Day Saints
Pay Tithing
Get an Education
Learn how to work
Spend less than you earn
Distinguish between wants and needs
Pay yourself first
Follow a budget
Margaret makes a GMI of $5,600. What is her NMI if she pays 12% income tax, 6.2% Social Security tax, and 1.45% Medicare tax?
$4,500
Calculate the amount of compound interest using the following:
P=$950
r= 7%
t= 50 years
$27, 984.17
DAILY DOUBLE! This is one we have talked about in class, but briefly. What is the term that means a numerical expression of a person's creditworthiness?
Credit Score
Jackie's take home pay each month is $910.25. Jackie pays $20 to the gas company per month, $50 to the phone company per month and $90.15 for car insurance per month. Jackie wants to go to Switzerland in 9 months and in 5 months needs to buy plane tickets for $1, 100. She needs to save a similar amount per month. Jackie also had a car loan to pay back and needs to pay about $125 to the bank per month.
Create a sample budget for Jackie. What is Jackie's left over income?
Sample Budget
$405.10
Why is financial literacy essential and important?
Understanding of money and financial principles will help you to make more informed financial decisions throughout your life leading to increased opportunities, monetary security, and financial freedom.