Budgeting & Money Management
What do you call money set aside for unexpected expenses?
An Emergency fund or Emergency savings
What is the money you earn before taxes and other deductions called?
Gross Income
This three-digit number helps lenders evaluate how you manage borrowed money.
Credit Score
This document outlines a business's goals, target market, competitors, and strategies for success.
Bussiness Plan
This type of pay means you earn a set amount of money for every hour you work.
Hourly Pay
What is a budget?
A plan for how you will earn, spend, save, and manage your money.
Money collected by the government to fund public services, such as roads, schools, and emergency services, is known as this.
Taxes
This important factor in your credit history reflects whether you pay your credit accounts on time.
Payment History
Rent, equipment, supplies, and permits needed to open a new business are examples of what?
Startup Costs
Health insurance, paid time off, and employer retirement contributions are all examples of what?
Employee Benefits
You earn $1,800 per month and spend $1,350. How much money do you have left?
$450
Your employer takes money out of your paycheck to help cover the taxes you owe. What is this process called?
Tax Withholding
Unlike a credit card, this type of card generally takes money directly from your checking account when you make a purchase.
Debit Card
A business earns $2,000 in sales and spends $1,200 on operating expenses. How much profit does it make before taxes and any other unlisted costs?
$800
Before asking for a higher salary, what should you research to determine whether your desired pay is reasonable?
Typical salary range for the position and location.
Housing, groceries, and utilities fall into this category of expenses because they are essential for daily living.
Needs
You earned $3,000 before deductions, and $700 was taken out for taxes and other deductions. What is your net income, also known as your take-home pay?
$2,300
You have a credit card with a $1,000 limit and a $900 balance. What financial concept does this demonstrate, and why could it be a concern?
High Credit Utilization, It means 90% of the available credit is being used, which can negatively affect a credit score.
An entrepreneur uses the same bank account for personal shopping and business purchases. What financial management practice should they follow instead, and why?
Separate personal and business finances to make tracking expenses, managing cash flow, and preparing taxes easier.
Job A offers $60,000 with limited benefits, while Job B offers $57,000 with strong health insurance, retirement contributions, and more paid time off. What should you compare before choosing?
Total compensation, including salary, benefits, paid time off, and other job-related factors.
You have money left after paying your bills. You want to buy new shoes, but you also need to save for an upcoming expense. According to smart budgeting practices, what should you do first?
Prioritize your necessary expenses and savings goals before spending on nonessential purchases.
One tax benefit reduces the amount of income subject to tax, while another directly reduces the amount of tax owed. What are these two tax benefits, respectively?
Tax deduction and a Tax credit
Someone regularly uses their credit card for purchases they cannot afford to repay and only makes minimum payments. Identify two potential financial consequences of this behavior.
They may accumulate interest charges and remain in debt longer. High balances may also negatively affect their credit score.
A small business earns $5,000 in revenue and has $3,500 in expenses. The owner wants to expand but also needs money for taxes and unexpected costs. What is the profit before taxes and other unlisted costs, and what should the owner consider before reinvesting?
$1,500. The owner should account for taxes, maintain a reserve for unexpected expenses, and evaluate how much can safely be reinvested without hurting cash flow.
An employer says the salary for a position is nonnegotiable. Name two other aspects of the job offer a candidate could professionally negotiate.
Additional paid time off, flexible work arrangements, a signing bonus, or professional development support.