Basic Terms
Necessities like food and water
What are needs
Tangible items that can be touched, used, purchased
What are Goods
Period of rising prices, value of dollar declines
What is inflations
Amount paid for working time in a week that is beyond the standard 40-hour workweek.
What is an overtime wage
Income before payroll deductions
What is Gross Income
Things you would like, for example video games
What is wants
Intangible activities that another person usually performs for a fee, such as cleaning services or doing tax returns
What are services
Period of slow or no economic growth causing consumers to spend less and businesses to cut back causing unemployment
What is a recession
Fixed payment for work and is expressed as an annual figure
What is salary
Take-home pay, income received after payroll deductions
What is net pay
Feeling of peace from knowing you can meet your needs
What is financial security
Your Beliefs about what is important and desirable
What are values
Application of science and research to human life and environments
What is technology
Income paid as a percentage of sales made by a salesperson
What is a commission
Social Security withholding and Medicare withholding are called
What is FICA taxes
An ongoing process that can take you from where you are to where you wish to be financially
What is financial planning
The overall structure of values and goals that guides your behavior and gives a sense of direction to your life
What is a value system
Beliefs, behaviors, and other characteristics common among members of a group or society
Culture
Wage based on how many widgets/items you can produce
What is piecework wage or piece rate
FICA stands for
Federal Insurance Contributions Act
The possession of a body of financial knowledge, a set of basic skills, the ability to apply the financial knowledge to making informed/responsible financial decisions
What is financial planning
Moral principles or beliefs that conform to accepted standards or right and wrong
What are ethics
Statistical characteristics of a population
What is demography
Income received from employment or self-employment
What is Earned Income
Four deductions required by law
Federal Taxes, State Taxes, Social Security withholding and Medicare withholding