Personal Financial Literacy

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What is income tax?

Back

A type of tax you pay once a year on any money you've earned, such as from a job or lottery winnings.

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What are needs?

Back

Things that are essential for survival, like shelter and food.

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What is net income?

Back

Money you receive after taxes are deducted from your earnings.

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If Jan babysits for $7 each time, how many times does she need to babysit to save $35?

Back

5 times.

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What does it mean to save money?

Back

To put money aside for future needs or wants.

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What is a payroll tax?

Back

A tax that is taken directly from your paycheck to fund social security and Medicare.

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What is gross income?

Back

The total amount of money earned before any taxes or deductions are taken out.

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What are wants?

Back

Things that are not essential for survival but are desired, like toys or video games.

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What is a budget?

Back

A plan that outlines how to spend and save money over a certain period.

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What does it mean to borrow money?

Back

To take money from someone with the agreement to pay it back later.