Foundations of Finance
Being financially capable
What is understanding basic financial topics, how to spend wisely, and save money?
A tax system based on a pay-as-you-earn concept
What is the federal tax income system?
Emergency funds should equal
What is 8-10 months' income?
"S" In SMART Goals
What is "Specific"?
Two ways to earn income
What are (1) Working for an employer and (2) Self employment?
Plan for the use of money based on goals, expenses, and expected income
What is budgeting?
Paid by employees and employers to finance federal Social Security and Medicare programs
What is FICA?
Avoiding Financial Trouble
What is living well within your budget and keeping debt under control?
"M" In SMART Goals
What is "Measurable"?
Prevents records of SSN being mixed up
What is no two Social Security Numbers being the same?
An amount of money set aside to have readily available in case of job layoffs, illness, injury, etc
What is emergency funds?
The percentage of FICA taxes
What is 7.65%?
Minimal impact of unavoidable problems
What is having an emergency fund, regular savings, practical credit controls?
"A" In SMART Goals
What is "Achievable"?
Two purposes for SSN (Social security number)
What are (1) Keeping record of an individual's covered earnings, and (2) The IRS using it as a taxpayer identification?
Giving money, goods, or services to help support and meet the needs of others and supporting organizations
What is philanthropy?
FICA is an example; Requires that employers pay the same amount of employees
What is a matching tax
A last resort in financially tough times
What is bankruptcy?
"R" In SMART Goals
What is "Realistic"?
Three types of wages
What are (1) Hourly, (2) Daily, and (3) Piecework bases?
An objective to be attained within a certain amount of time
What is a goal?
Deductions withheld for health care, dental care, vision care, retirement plans, etc
What are voluntary deductions?
Exchanging real estate, autos, or possessions for money to pay something off
What is selling assets?
"T" In SMART Goals
What is "Timely"?
The least amount of overtime rate in hourly earnings
What is 1.5x?