Term
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Definition
| A budget is a plan for managing money during a given period of time. |
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Term
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Definition
| Income is any money coming in. |
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Term
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Definition
| Gross income is the total amount of income from your wages or salary before payroll deductions. |
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Term
| What are payroll deductions? |
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Definition
| Payroll deductions are the amounts subtracted from gross income, which results in your net income. |
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Term
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Definition
| Taxes are fees placed on income, property, or goods to support government programs. |
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Term
| What is federal income tax? |
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Definition
| Federal income tax is a fee for the support of federal government programs and is a payroll deduction collected by the employer each pay period and paid to the Internal Revenue Service (IRS). |
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Term
| What is state income tax? |
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Definition
| State income tax is also subtracted from your paycheck. |
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Term
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Definition
| FICA is the Federal Insurance Contribution Act. |
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Term
| What is social security tax? |
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Definition
| Social Security tax it collected from most employees to fund social security, which provides old-age, survivors, and disability insurance. |
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Term
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Definition
| Medicare taxes are collected from most employees to fund the hospital insurance provided under the system. |
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Term
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Definition
| Net income is the value of your paycheck after deductions have already been made, also known as your take home pay. |
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Term
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Definition
| A W-4 form allows the employer to withhold federal income taxes from the employees wages. |
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Term
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Definition
| A W-2 form is used to itemize how much money was earned by an employee and how much was withheld and sent to the IRS. |
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Term
| What does P.Y.F. stand for? |
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Definition
| P.Y.F. stands for pay yourself first , which is when a person developes a habit of saving money regularly. |
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Term
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Definition
| Expenses are the money you spend on your needs and wants, but is also known as the money outgoing. |
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Term
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Definition
| Fixed expenses are payments that are a set dollar amount every time. (i.e. car payments) |
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Term
| What are variable expenses? |
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Definition
| Variable expenses are payments that change in their price. (i.e. gas) |
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Term
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Definition
| Cash management is how you handle money coming in and money going out, but is referred to as cash flow. |
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Term
| What does overdraft protection do? |
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Definition
| Overdraft protection is a short term loan provided by a bank to cover the amountin which you overdrew your account. |
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Term
| What is a checking account? |
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Definition
| A checking account is an account you have at a financial institution that you use for convienience and to minimize the amount of cash you need to carry. |
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