Budgeting
A plan to manage money, expenses, and savings
What is a budget?
Money earned before deductions
What is gross pay?
If federal tax is $20 and state tax is $15, the total amount withheld is how much?
$35
Knowing how money works, including earning, spending, saving, and rules
What is financial literacy?
In the 50/30/20 rule, needs should take up what percentage?
50%
Costs that change with use
What are variable expenses?
Federal taxes pay for what programs?
Military and Social Security
If total deductions are $50 and gross pay is $240, how much is the net pay?
$190
Putting money aside for later instead of spending
What is saving?
If your savings rate is 10% and you earn $2,000, how much do you save?
$200
Costs that don’t change monthly
What are fixed expenses?
What are local taxes used for?
Schools, roads, community improvement
Medicare tax funds what benefit for what age group of people?
Healthcare for people over 65
Planning how to use $200 for needs, wants, and savings
What is budgeting?
Hours worked x hourly wage
Dividing money into specific envelopes to avoid overspending
The Envelope System
State taxes pay for:
Police, firefighters, EMT
Paid Time Off (PTO) is what?
Days you can take off and still get paid
The FDIC insures deposits up to what amount?
$250,000
If Alex works 20 hours at $12/hr, how much is his gross pay?
Splitting money into your needs, wants, and savings
What is the 50/30/20 rule?
What does the Social Security tax go towards?
Retirement and disability benefits
An written agreement explaining service, cost, and payment terms
What is a contract?
If you buy a “brand new” phone that is actually used and damaged, which law protects you?
Consumer Protection Laws
If your income is $2,000, savings under 50/30/20 would be how much?
$400