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
| An income is any money coming in. |
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Term
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Definition
| Gross income is the total amount of income 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. |
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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, collected each pay period, mostly goes to IRS. |
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Term
| What is state income tax? |
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Definition
| State income tax is a fee collected by your employer and paid to the state revenue department to support state programs. |
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Term
| What is social security tax? |
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Definition
| Social security tax is collected from most employees to fund this federal program, which provides old age, survivors, and disability insurance. |
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Term
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Definition
| Medicare taxes are also collected from most employees to fund the hospital insurance under this system. |
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Term
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Definition
| Net income is your take home pay, subtracting deductions from your paycheck leaves you with this. |
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Term
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Definition
| Expenses are any money going out. |
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Term
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Definition
| Fixed expenses have fixed dollar amounts and are the exact amount every time. |
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Term
| What are variable expenses? |
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Definition
| Variable expenses can change, which means you usually have more control over them. |
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Term
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Definition
| Cash management is how you handle money coming in and money going out. |
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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. |
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Term
| What is a cost/benefit analysis? |
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Definition
| A cost/benefit analysis is choosing between alternatives to make the best choice. Decide what your wants and needs are and think about whether or not the service or product you want to buy meets your wants and needs. |
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Term
| What is the three steps to the envelope system? |
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Definition
| 1) Label an envelope for each spending category of your budget. 2) Place the planned amount of money needed in the envelope each pay period. 3) When you get ready to spend money in that category, take the money out of the envelope. |
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Term
| What is a checking account? |
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Definition
| A checking account is used to hold cash and you can write checks for regularly occuring bills. |
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Term
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Definition
| An ATM is an automated teller machine, you can take money out of your account by using a pin number. |
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Term
| What is a quick check account? |
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Definition
| A quick check account is linked to a debit card that is linked to your chgecking account, used to hold cash. |
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