Life After Graduation
This model is used to evaluate the costs and benefits of choices like college vs. the workforce.
What is the Rational Decision-Making Model?
One major benefit of this housing choice is that the landlord is responsible for maintenance and repairs.
What is renting?
This is the total amount of money you earn before any deductions are taken out.
What is gross pay?
This is the standard federal form that individual taxpayers use to file their annual income tax returns.
What is Form 1040?
This tax structure takes a higher percentage of income from low-income earners than from high-income earners (e.g., sales tax).
What is a regressive tax?
This Georgia-specific scholarship provides financial aid for college to students who maintain a specific GPA.
What is the HOPE Scholarship?
This financial concept describes assets passed down from one generation to the next, often started by consistent saving and investing.
What is generational wealth?
These two specific programs make up the FICA tax on your paystub.
What are Social Security and Medicare?
This tax is placed on the sale of goods and services and is usually a percentage of the purchase price.
What is sales tax?
The U.S. Federal Income tax is this type of structure, where the tax rate increases as the taxable amount increases.
What is a progressive tax?
To apply for federal grants, work-study, and loans, students must complete this document.
What is the FAFSA (Free Application for Federal Student Aid)?
When buying a car, a rational consumer considers not just the price, but this—which includes insurance, gas, and repairs.
What is the total cost of ownership?
This type of income is earned by people who work for themselves and receive a Form 1099 instead of a W-2.
What is an independent contractor (or freelancer)?
This tax is based on the value of land and buildings that an individual or business owns.
What is property tax?
Also known as a "flat tax," this structure taxes everyone at the same percentage regardless of income.
What is a proportional tax?
This is the primary document (often from parents) needed to complete the FAFSA to prove income.
What are tax returns (or W-2s)?
This is a specific type of loan used to purchase a home.
What is a mortgage?
This is the money left over on your paycheck after all taxes and elective deductions are removed.
What is net pay (or take-home pay)?
If you sell a stock for more than you bought it for, you must pay this type of tax on the profit.
What is capital gains tax?
If the government increases personal income taxes, an individual's disposable income and spending will likely do this.
What is decrease?
Unlike a grant or scholarship, this method of paying for school must be paid back with interest.
What is a student loan?
Choosing to buy a home instead of renting means you are building this—the difference between the home's value and what you owe.
What is equity?
These are payments made by a corporation to its shareholders from its profits.
What are dividends?
This tax is levied on the transfer of the estate of a deceased person.
What is estate tax (or inheritance tax)?
If a state government votes to replace its progressive income tax with a proportional (flat) tax that generates the same total revenue, this specific income group would likely see a decrease in their tax burden, allowing them to increase their personal savings.
Who are high-income earners?