Terms in this set (43)
Summary of needs & goals for the future and budget for spending, saving and producing income to meet these goals.
when supply doesn't equal a demand and shortage occurs (cost goes up)
Outline of a person's sources in income and plan for allocating
Expenses are less than/equal to income
Expenses exceed income
Income exceeds expenses
Fixed compensation paid regularly for services (usually involves a contract)
Financial compensation paid to worker based on time worked (hourly)
net pay (take-home pay)
Amount of income left after taxes and other deductions are taken out of person's gross pay
Various amounts subtracted from an employee's gross earnings (fed/state income tax, social security, insurance, savings, etc.)
Form employee fills out so employers can withhold correct amt of fed income tax from paycheck (the more exemptions claimed, the less tax is withheld).
Annual report sent from employer to employee and IRS
Personal Income Tax
Tax levied on financial income of individuals
Funded by payroll taxes. Finances Fed programs to provide retirement disability and life insurance benefits to old people like grandma.
Form of insurance that provides medical care and income for employees injured on the job.
Various forms of non-wage/salary compensation (vacations, sick/personal days, profit sharing, housing allowance, car, health insurance, tuition reimbursement, child care, retirement plan, etc)
Proving flexibility by allowing employees to select from a menu of available benefits that best meet their needs.
Doesn't change from month to month
Does change each month
Doesn't occur each month ... may be every other or every 6 mo
An unforeseen cost
Items and services needed to make a house/apt functional (water, electricity, gas, phone, cable, sewer, trash, internet)
Money left over after a person has paid for the essentials (food, clothing, shelter, necessary transportation and medication)
Pay Yourself First - A good way to establish/maintain smart saving habits. Treat your savings as a bill you owe, depositing a regular amount each month.
Debts you owe
Items of value that a person owns (cash, property, possessions)
The ability to easily convert financial resources to cash w/o a loss in value. (Cash and items that can be quickly converted to cash)
The difference btwn the amount a person owns and the debts owed. Assets minus liabilities.
Net Worth Statement / Personal Financial Statement
Documents that provide a list of current assets and liabilities and give a summary of income and spending.
Cost of Living
An average cost of maintaining a certain basic standard of living (based on necessities like food, shelter and clothing)
To designate for a special purpose. A budget allocates funds for expenses, savings, investments and contributions.
The nations retirement program. It finances federal programs to provide retirement, disability, and life insurance to eligible people.
Nations healthcare program. Provides hospital and medical insurance.
Percent taken out of paycheck depends on amounts of gross pay earned by a person. It assists in funding government agencies.
Employee contributes each pay period to a retirement plan. Depends on employer by percentage.
The amount required by law for employees to withhold from earned wages to pay taxes.
.33 x 2000
Calculate percentages for budgeting
33% of $2000
Example of a fixed expense
Example of a variable expense
Expense for a car accident
Example of an unexpected expense
Maintenance for your car
Example of a periodic expense