Earning & Spending
This term refers to the total amount you earn before any deductions are taken out.
gross pay
This form shows how much you earned and how much was withheld for taxes in a year.
W-2
This is the regular payment you make to an insurance company to maintain your coverage.
Premium
This government program provides benefits to eligible workers after they retire.
Social Security
This is the annual rate of interest charged on a loan or credit card.
APR
The amount of money you actually receive in your paycheck after all deductions is called this.
Net pay
You fill out this form when starting a new job to tell your employer how much tax to withhold.
W-4
This is the amount you pay out of pocket before your insurance coverage kicks in.
Deductible
This type of retirement account is set up by an individual, not an employer.
IRA
This represents your creditworthiness and is typically a number between 300 and 850.
Credit Score
This type of budget plans for income and expenses to remain consistent over a period of time.
Fixed budget
This form is used to file your federal income taxes with the IRS.
Form 1040
This fixed amount is what you pay for a specific healthcare service, like a doctor's visit.
This retirement savings plan is offered through your employer and allows you to contribute a portion of your paycheck.
401(k)
This is the original amount of money borrowed in a loan (before interest).
Principal
This budgeting approach allows for flexibility and is useful for irregular income or unexpected costs.
Variable or non-fixed budget
This form reports income you earned outside of a regular job, such as freelancing.
1099
If your car insurance deductible is $1000 and you have $3000 in damages with a coverage limit of $8000, how much will you pay out of pocket?
$1000
This retirement plan is similar to a 401(k) but is specifically for employees of non-profit organizations.
403(b)
This occurs when you spend more money than is in your checking account, potentially leading to fees.
Overdraft Fees
Calculate the net pay if gross pay is $1000 and total deductions are $250.
$750
This tax strategy involves listing out individual deductions instead of taking the standard deduction.
Itemizing!
Name 5 different types of insurances
- health, travel, car, renters, pet
In this type of IRA, contributions are taxed now but withdrawals in retirement are tax-free.
ROTH IRA
Name 3 differences between debit and credit.
- connected to checking account, build's credit, different rewards, different fees, one is a loan... one comes from your account.