Ways to Earn Money
These are two common types of income.
What are Earned and Unearned Income?
Total amount earned before deductions.
What is gross pay?
It tells your employer how much tax to withhold.
What is a W-4?
This type of bank account is for frequent use.
What is a checking account?
This is a plan for how to spend and save money.
What is a budget?
Hourly pay is based on hours worked; salary is a fixed amount regardless of hours.
What is the difference between hourly pay and salary?
The amount you take home after deductions.
What is net pay?
It reports annual income and taxes paid to the IRS.
What is a W-2?
A fee charged when you spend more than your account balance.
What is an overdraft fee?
Income earned as a percentage of sales made.
What is commission-based pay?
Amounts taken out for taxes, insurance, or retirement.
What are paycheck deductions?
This acronym refers to Social Security and Medicare deducations.
What is FICA?
This phrase refers to making sure all the checks you have written have cleared through your bank account.
What is balancing your checkbook.
Your hourly rate if you worked 25 hours and earned $250.
What is $10 an hour?
Your gross pay after $250 of deductions resulting in a $950 paycheck.
What is $1,200?
Your tax rate when you owe $4,000 in taxes on $40,000 of income.
What is 10%?
This is the amount of simple interest you would have gained after one year of 2% APR with a $500 principal.
What is $20?
Earning money automatically (e.g., from investments or rental property) without active work.
What is passive income?
Examples: health insurance, retirement contributions, paid time off.
What are benefits?
This type of tax incentive reduces your taxable income.
What is a tax deduction?
This type of interest grows as your account balance grows.
What is compound interest?