Budget Basics
A plan for how you earn, spend, and save your money.
What is a budget?
A monthly car payment that stays the same is an example of this.
What is a fixed expense?
The lowest hourly pay that employers are legally allowed to pay covered employees.
What is minimum wage?
Extra money a customer voluntarily gives for good service.
What is a tip or gratuity?
This is a retirement savings plan offered by many employers that employees can contribute to through their paychecks.
What is a 401(k)?
This is a document showing your earnings, taxes, and other paycheck deductions.
What is a paystub?
Money that you earn or receive.
What is income?
Your electricity bill changes every month. It is an example of this.
What is variable expense?
A fixed amount of money paid regularly for doing a job, usually expressed as an annual amount
What is a salary?
An extra payment an employee might receive for excellent performance.
This is money earned from savings accounts or lending money.
What is interest?
A tax collected on taxable earnings, including wages and salaries.
What is income tax?
Money that you spend on goods and services.
What are expenses?
This is the amount of money you earn before taxes and deductions.
What is gross income?
Extra pay earned for working beyond the standard number of hours, typically more than 40 hours per week.
What is overtime?
This is a payment charged for performing a service.
What is a fee?
This is money a landlord earns when tenants pay to live in their property.
What is rental income?
What is social security tax or medicare?
Money that you owe to another person, bank, or company.
What is debt?
This is the money you actually take home after taxes and other deductions.
What is net pay?
A salesperson earns 5% of every sale they make. This is an example of this type of income.
What is commission?
This is income that generally requires little ongoing work after an initial investment or setup.
What is passive income?
This retirement plan promises employees regular retirement income based on their salary and the number of years they worked.
What is pension?
A tax system in which higher-income earners pay a higher percentage of their income in taxes.
What is progressive tax?
This budget helps you to split money into your needs, wants, and savings
What is the 50/30/20 budget?
This is your net pay when your gross pay is $1,000 and your deductions total $180.
What is $120?
What is hourly?
This is the type of income a musician earns each time their song is played on a streaming service or used commercially.
What are royalties?
This is money that a company distributes to its shareholders from its profits or other available funds.
What are dividends?
A tax system in which everyone pays the same percentage of taxable income, regardless of income level.
What is proportional tax?