Earning Income
Possible future earnings based on skills, education, and qualifications.
Potential Income
Physical items (books, shoes, laptops).
Goods
A plan for spending and saving.
Budgeting
Borrowing money to pay later.
Credit
Putting money in assets (stocks, bonds, real estate) for growth
Investing
Transfers financial risk (health, auto, renters, homeowners).
Insurance
What is the most common payroll tax
Federal income tax
Non-salary perks such as health insurance, retirement plans, paid leave.
Employee Benefits
Work/labor provided (haircuts, babysitting, teaching).
Services:
Setting aside money for future goals.
Saving
Build credit history, purchase protection, rewards.
Benefits
Chance of losing money.
Risk
Reduces medical financial burden.
Health Insurance
These are taken from income or purchases.
Federal, State, Local Taxes
More education and training usually lead to higher earning potential.
Necessary Education/Skills
Weigh cost vs. benefit, quality vs. price.
Consumer Decision-Making
Rewards or benefits that influence financial choices (ex: tax credits).
Incentives
Loan that must be repaid with interest.
Student Loans
Profit earned from investment.
Return
Accept, reduce, or transfer risk.
Risk Management:
Income after deductions.
Net Pay (Take-Home Pay)
Mandatory payments to the government (federal, state, local).
Taxes
Protects consumers with labeling laws, regulations, and truth-in-advertising.
Government’s Role:
Money earned on savings (or paid on debt).
Interest Rate
Do not need repayment.
Scholarships/Grants
Reduces real returns.
Inflation
Having strong passwords and monitoring accounts help with:
Identity Theft Protection
What is an example of local tax?
City property tax
Specialized skills needed to perform specific tasks.
Technical Skills
Mandatory contributions to government are
Taxes
Reduces purchasing power of money over time.
Inflation
Part-time jobs to help pay for school.
Work-Study
Spreading investments to lower risk.
Diversification
Rental insurance covers:
Loss/damage to YOUR belongings in the rental
What IRS form shows annual wages?
W-2