Types of Taxes
Lori's dad buys a gas grill. What type of tax does Lori's dad pay at the store?
Sales tax
What is the term that describes the total amount of money a worker earns before taxes and other deductions have been taken out?
Gross income
What is a balanced budget?
Income = expenses
What is a check?
A slip of paper that is filled out to allow a bank to take money out from your checking account to pay for a purchase
May's income is less than her expenses. What is the BEST action for her to take?
A. Don't pay the mortgage
B. Don't pay utilities
C. Don't eat at the restaurant
C
Which type of tax is described by this definition?
Money employer withholds from a worker's paycheck to fund federal programs such as Social Security and Medicare
Payroll tax
Explain the difference between gross and net income
Gross income is one's income BEFORE tax. Net income is one's income AFTER deductions.
Carries net pay is $2500 each month. She plans to buy a home soon. Her monthly budget is shown except for the amount spent for a house payment. What is the largest house payment she can afford in order to have a balanced budget?
Car payment $550
Gas $120
Communication $140
Other $300
Savings $200
$1,190
Do you have to pay money that you spend with a credit card back?
YES, with interest!
Samantha has $150 left after her monthly expenses. What could she do with the money to help her maintain a balanced budget?
A. spend $150 on needs
B. spend $150 on wants
C. put $150 in savings
C
What is a yearly federal tax on the earnings of a person or business?
Income tax
Deja earns $9 per hour working at a store. Her paycheck last week was $204 for 25 hours of work. Is $204 her gross or net income?
net income
What is a surplus?
the amount that remains when use or need is satisfied
What is the difference between a credit card and a debit card?
Using a debit card allows one to draw directly from one's checking account. While using a credit card means you borrow money from a bank.
Adan's expenses exceed his income. What is NOT a long term solution?
A. Sell items he doesn't need at a yard sale
B. Move to a less expensive apartment
C. Find a roommate to share rent and utilities
A
Andrea bought a summer vacation home that she rents as an Air BnB during the summer. Which tax does she have to pay for the home?
Property tax
Serena takes home $1,104 each payday after payroll tax has been withheld by her employer. Without tax, Serena's paycheck would be $1,270. How much are Serna's gross and net income?
Gross income: 1, 270
Net income:1,104
What is a deficit? Explain in your own words
an excess of expenditure or liabilities over income or assets in a given period
When would someone need to use a credit card?
book hotel, large purchase, vacation, ect.
Alex wants to balance his budge. Which of the following would NOT help him balance his budget?
A. Switch to a less expensive phone plan
B. Switch to a work schedule with less hours
C. Carpool to work to spend less money on gas
B
Cindy's yearly earnings are $45,976. What type of yearly tax does Cindy have to pay on her income?
Income tax
Cindy earns $8 per hour working for Taco Bell. Her paycheck this week is $199 for 30 hours of work. What amount was withheld by her employer?
$41
Sally creates a balanced budget. Her net income is $3,110 every month. She pays $1,245 for her mortgage, $375 for insurance, $120 on gas, $40 on her cell phone bill, $150 on TV, puts $115 into Savings, and spends $600 on other things per month. What amount could be her maximum "Car payment" if Sally would buy a new car?
$1,005
Is it smarter to pay with a credit card or with cash?
Cash
Each month, Emma spends:
$125 for her cell phone, $245 on her car payment, $375 on dining out, and $42 on a gym membership.
Which expense could be immediately reduced to balance her budget without worrying about a contract?
Dining out