Earning an Income

Earning an Income ReviewA purposeful course of action or purpose in life that generally provides income

CareerThe more ______ a person has, the easier it will be for that person to find employment.

EducationMoney received from work performed; may include salary, wages, tips, professional fees, commissions, etc.

Earned IncomeFICA is also known as Social SecurityThe health, education, experience, training, skills and values of people. Also known as human resources

Human CapitalWhen estimating income, you should be sure to include Wages, Commission, Tips, BonusesInvestment of time, effort and resources in education and training--to increase one's own knowledge, skills, health, etc., or to develop those assets in othersHuman Capital InvestmentThe _______ is the amount for which a paycheck is written.

Net PayPayments earned by households for selling or renting their productive resources. May include salaries, wages, interest and dividendsIncomeWhen setting _____ goals, set short-term and medium-term goals as steps to accomplish your long-term goalsLong-termA piece of work usually done on order at an agreed-upon rate. Also a paid position of regular employment

JobA _______ requires education or training and a _____ does notCareer/jobThe quantity and quality of human effort available to produce goods and services

laborA _______ can help you do any of the following evaluate your spending habitsavoid running out of money between paychecksincrease your savings

budgetAnything subtracted from your gross income

DeductionsLegal allowances that reduce the amount of income taxes subtracted from your gross income

exemptionsFederal Insurance Contributions Act

FICAIf you sign a lease on an apartment, your rent is a

Fixed expenseWages or salary before deductions for taxes and other purposes

Gross incomeFederal government program, financed by deductions from wages, that pays for certain health care expenses for older citizens

MedicareThe BEST description of a _____ is a plan for saving and spending your money

budgetCommonly called "take home pay"; it is your income after all deductions and exemptions

Net incomeSetting a goal to purchase a new car in four years is the example of a _____ goal.

Medium-termA goal may be all of the following

Short-termmedium-termlong-termWhat are some of the benefits many employers offer to employees?

Health insuranceretirement planhealth insuranceWhat is required to be subtracted from your gross pay?State and federal taxesWhat is the opportunity cost of dropping out of school?

Higher incomeThe costs of goods and services, including those that are fixed (such as rent and auto loan payments)and those that are variable (such as food, clothing, and entertainment)

expensesIncome that varies from week to week or month to month

Variable incomeLegal allowances that reduce the amount of income taxes subtracted from your gross income

exemptionsWages or salary before deductions for taxes and other purposes

Gross incomeA federal government program that provides retirement, survivor's, and disability benefits, funded by a tax on income, which appears on workers' pay stubs as a deduction labeled FICA

Social securityA statement about what a person wants to be, do, or have, accomplished by taking certain steps; provides direction to a plan of action

goalA plan for managing money, dividing up expected income and expenses among spending and saving options based on personal goals during a given time period

budgetThe process used to determine what an individual wants to be, do, or have (i.e., what a person wants to accomplish)

Goal-settingDesired results from one's efforts to achieve personal economic satisfaction

Financial goalExpenditures that are the same from week to week or month to month, such as mortgage or rent payments and car payments

Fixed expensesExpenditures that change from week to week or month to month--for food, clothing, recreation and entertainment, for example

Variable expenses