Financial Literacy TEKS 5.10

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What is Gross Income?

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Gross Income is the total amount of money earned before any deductions such as taxes or insurance.

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What is Net Income?

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Net Income is the amount of money a person takes home after all deductions have been made from their gross income.

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How do you calculate Gross Income?

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Gross Income is calculated by multiplying the hourly wage by the total hours worked.

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What is a deduction?

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A deduction is an amount that is subtracted from gross income, such as taxes or insurance premiums.

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What is a paycheck?

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A paycheck is a document that an employer gives to an employee as payment for work done.

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What is a processing fee?

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A processing fee is a charge that may be added to a payment method, such as when using a check or credit card.

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What does it mean to have insufficient funds?

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Insufficient funds mean that there is not enough money in an account to cover a payment.

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What is a credit card?

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A credit card is a payment card that allows the holder to borrow funds to pay for goods and services.

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What is a debit card?

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A debit card is a payment card that deducts money directly from a checking account to pay for a transaction.

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What is payroll tax?

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Payroll tax is a tax that employers withhold from employees' wages to fund social security and Medicare.