The Basics of Earning
What is bartering?
Bartering is a system of exchange in which a transaction directly involves exchanging goods or services for other goods or services without using a medium of exchange.
What do the letters stand for in the SMART acronym?
S - Specific
M - Measurable
A - Achievable
R - Relevant
T - Time bound
What is the difference between an internship and an apprenticeship?
Both involve learning with hands-on-experience, however, apprenticeships are usually PAID while internships are usually unpaid.
Define social security.
Social Security is a program that provides financial assistance to Americans throughout their lives. It's a social insurance system that pays benefits for old age, death, and disability.
How do deductions affect your net pay as shown on a paystub?
What are the three primary functions of money?
A unit of Account, A Store of Value, A Medium of Exchange
What are some factors to look for when choosing a career?
What is the typical duration of a bachelor's degree?
Four years.
What is the purpose of taxes?
To fund government services and programs, such as education, infrastructure, and public safety.
What is another name for Net Pay?
Take-home Pay
How can job experience affect salary increases?
The more experience, the higher the salary may be.
What does ROI stand for?
Return on Investment
What is a certification?
A credential that demonstrates a person has the skills and knowledge to work in a specific field or perform a specific job
Jason’s gross pay this month is $960. His federal income tax amount is $114; state income tax, $42; Medicare deduction, $15; and FICA contribution, $60. What is Jason’s net monthly pay?
$729
Discuss how understanding paystubs can help with personal financial planning.
By analyzing paystubs, individuals can budget effectively track income, understand tax implications, and make informed decisions about spending and saving.
Sonya makes screen-printed shirts and her neighbor, Tony, is skilled at training dogs. Sonya recently got a dog that needs to be trained and Tony’s school club needs new shirts. Instead of paying a professional dog trainer, Sonya asks Tony to train her dog. In return, she agrees to print shirts for Tony’s school club. This is an example of:
Bartering
What is the main difference between a debit card and a credit card?
A debit card takes money out of your checking account, a credit card you are BORROWING money and then have to pay it back with INTEREST.
Which of the following is NOT information needed to complete the Free Applicate for Federal Student Aid (FAFSA) form?
1. The student’s marital status
2. Tax records from the student’s parents or legal guardians
3. Where the student’s parents’ or legal guardians’ work
4. The student’s mailing address
3. Where the students' parents or legal guardians' work.
Name TWO benefits that employees may receive from the employer.
401k retirement, Health Insurance
Explain the significance of year-to-date (YTD) earnings on a paystub.
Year to Date (YTD) refers to the period beginning on the first day of the current calendar year or fiscal year up to the current date.
In financial literacy, what is the "medium" in a medium of exchange?
Money!
Which might be found at the U.S. Department of Labor website?
1. Information about car insurance
2. Facts about mortgages
3. Career resources
4. Federal guidelines for healthcare
3. Career resources
Name one advantage of attending trade school over a four-year university.
1. Trade schools typically offer shorter programs that lead directly to employment in skilled trades.
2. Little to no student debt
What are the four main income taxes taken out of your paystub?
Federal, State, Social Security, Medicare
What is the difference between gross pay and net pay?
Gross pay is the amount on a paystub before taxes and deductions are taken out, net pay is the amount you receive after taxes and deductions.