Help
Options
Didn't know it?
click below
click below
Knew it?
click below
click below
Don't Know
Remaining cards (0)
Know
retry
shuffle
restart
0:00
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
Personal Finance
Personal Finance Final
| Term | Definition |
|---|---|
| Taxes | Required charges of citizens by local, state, and federal governments; roads, police, schools, government, fire and emergency services |
| W-4 Form | Filled out before job; Employee's withholding allowance certificate; determines the amount of money withheld for taxes |
| I-9 Form | Used to prove the identity of people and avoid hiring non U.S. citizens; passport, driver's licence, U.S. military card, Social Security card, birth certificate |
| W-2 Form | States the amount of money earned and taxes paid througout the previous year |
| Paycheck | Paper check with stub; least secure |
| Direct Deposit | Employers directly deposit employee's paycheck into the authorized employee's bank account |
| Payroll Card | Electronically carries the balance of the employee's net income |
| Paycheck Pros | Employee controls when the check is deposited |
| Paycheck Cons | Least secure; employee is responsible for getting it to the bank; easy to lose |
| Direct Deposit Pros | No direct handling of check; employee knows exactly when he/she will be paid |
| Direct Deposit Cons | There could be a computer issue |
| Payroll Card Pros | Money goes to the card automatically |
| Payroll Card Cons | May charge fees for the card |
| Personal Information | The employee's full name, address, and social security number or employee identification number |
| Pay Period | The length of time for which an employee's wages are calculated; weekly, bi-weekly, or monthly |
| Gross Income | Multiply hours by pay rate; Total amount of money earned before payroll withholdings |
| Payroll Withholdings | Amount of money subtracted from the gross income for taxes |
| Withholding Tax | Amount required by law for employers to withhold from earned wages to pay taxes |
| FICA | Federal Insurance Contribution Act; Medicare and Social Security |
| Social Security | Provides retirement income for the elderly and pays disability benifits |
| Medicare | Health care program for the elderly and disabled |
| Net Income | Amount left after all payroll deductions have been taken from the gross income; Gross income minus taxes |
| Year-to-Date | Totals all of the deductions which have been withheld from an individual's paycheck from January 1st to the last day of the pay period indicated on the paycheck stub |
| Job | A specific task done as a part of the routine of one's occupation |
| Occupation | A wide category of jobs with similar characteristics |
| Career | A lifetime journey of building and making good use of your skills, knowledge, and experiences |
| Human Capital | Process of self-investment |
| Transferable Skills | Skills acquired through the process of self-investment |
| Standard of Living | Minimum necessities, comforts, or luxuries thought to be essential |
| Well-being | State of being happy, healthy, and prosperous |
| Factors that influence a career | Jobs, occupations, human capital, transferable skills, education, family/friends, and leisure activites |
| Goal | Something a person intends to accomplish |
| Why Set Goals? | Like a road map; provides direction, focus on important things, and keep the end result in mind |
| Short-Term Goals | Can be accomplished within one year |
| Long-Term Goals | Can be accomplished in more than one year |
| SMART Goals | Well written goals that are Specific, Measurable, Attainable, Realistic, and Time bound |
| Educational Goals | Help individuals prepare for success in the workplace; short and long term; provide guidance and direction; enable individuals to reach financial goals |
| Financial Goals | A goal that guides financial planning; short and long term |
| Specific | State exactly what is to be done |
| Measurable | Include how the goal can be measured |
| Attainable | Determine steps to reach the goal |
| Realistic | Don't set goals for something unrealistic |
| Time Bound | State when the goal will be met |
| Decision | A choice that is made about things that affect a person's life |
| Routine Decisions | Made on a day-to-day basis; don't require a lot of time to think through; can become a habit |
| Major Decisions | Have long-term effects on your life; should be made very carefully and with a lot of thought |
| Financial Decisions | Major decision; impact an individual's or family's well-being |
| Decision Making Process | Guides individuals to think through all components of making a good decision |
| Identify the Problem | 1st step in decision making process; Know problem or question before searching for an answer |
| List Alternatives | 2nd step in decision making process; Brainstorm pros and cons for all of the possible choices |
| Decide | 3rd step in decision making process; Make the best choice after thinking about all of the consequences |
| Evaluate the Results | 4th and final step in decision making process; Will help in making the better decision in the future |
| Values | Something that is desirable, worthwhile, and important; influenced by family, friends, teachers, coaches, tv, and movies |
| Need | Something necessary or required for life |
| Wants | Something unnecessary but desired |
| Bartering | Direct exchange of one good for another |
| Lydians | group of people that were the first in the Western World to make coins |
| Commodity Money | Coins containing precious metals; traded because of its value |
| Mulberry Bark Tree | Used by Chinese to make their paper money |
| Representative Money | Tokens or pieces of paper that aren't intrinsically valuable; can be exchanged for commodity |
| Fiat Money | Can't be redeemed for a commodity |
| Federal Reserve | Responsible for maintaining the integrity of U.S. currency |
| Chinese | First nationality to use paper money |
| Spanish 8-reale | One of the most widely used coins during the 18th century; split into pieces |
| Needs Examples | Water, food, shelter, and clothing |
| Wants Examples | iPod, laptop, iPhone, car, tv |
| Spending Plan | Financial statement individuals can use to assist with money management |
| Income | Money going in |
| Expenses | Money going out |
| Spending Plan Benifits | Gives understanding of where money is going, tracks income and expenses, helps people meet financial goals, and helps people live within their income |
| Major Expenditures | largest expenses in a spending plan; housing,transportation, insurance, food, other, & savings |
| Pay What First? | Yourself |
| Insurance | protects people financially from unexpected expenses caused by accidents or illness |
| Types of Insurance | Health, Automobile,& Home |
| Housing Expenses | Insurance, taxes, maintenance, utilities, move-in costs, & monthly payment |
| Car Expenses | Monthly payment, maintenance, fuel, licence and registration, insurance, & optional upgrades |
| Food Expenses (Least Expensive to Most Expensive) | Meals from scratch at home, convenience foods at home, fast food, sit-down restaurant |
| Savings | Income not spent on current expenses |
| Pay Yourself First | Set aside money for saving before spending any money |
| Savings % | 10% |
| Insurance % | 7% |
| Housing % | 30% |
| Transportation % | 20% |
| Food % | 15% |
| Other % | 18% |
| Other Examples | Clothing, Donations, Personal Care, & Entertainment |
| Impulse Buying | Unplanned buying, little consideration of product |
| Comparison Shopping | Planned buying, careful consideration of product |
| Benefits of Comparison Shopping | buy same product for less money, buy more goods with the same amount of money, buy a better quality product for the same amount of money |
| Steps of Comparison Shopping in Order | 1) Decide exactly what is needed before shopping, 2) What is the quality of the product I am using? 3) What is the total cost? 4) How will the product be used? 5) Consider the opportunity cost and make a decision |
| Opportunity Cost | Something an individual gives up to receive another |
Created by:
16755
Popular Finance sets