Money Management 101

Paycheck

100

Hourly earning

Wage 

200

Pay before deductions 

Gross Pay

300

Take home pay after deductions

Net Pay

400

What are the withholdings such as Social Security, MediCare, State Tax, Federal Tax called? 

Deductions

500

What percentage of your pay is deducted?

A. 1.25% -3.3%

B. 7.65% -9%

C. 15.1% - 20.5%

B. 7.65% - 9%

Expenses

100

Recurring expense that stays the same 

Fixed Expense

200

Expense that change in amount or frequency based on usage

Variable Expense 

300

These are expenses that are essential for survival

Needs

400

These expenses are non-essential and are used for comfort and pleasure

Wants

500

Rent is this type of expense

Fixed 

Budgeting

100

A plan for how money will be spent 

Budget

200

Recommended budgeting strategy for dividing your income into 3 categories

50/30/20 Rule

300

Money that is set aside for future use

Savings

400

What percentage of your income should go to wants

30%

500

What are the 4 things that should be considered when creating a budget

timeframe, income, expenses, & financial goals