Personal Finance Basics Flashcard

Front

Which of the following best defines "salary"? Options: The total amount of money you earn from all sources, The regular amount you are paid by your employer at your job, The money you borrow that must be paid back over time, The amount left after you pay taxes

Back

The regular amount you are paid by your employer at your job

Front

What is "take-home pay"?

Back

The salary that is left after you pay taxes.

Front

Which term describes a plan you write down to decide how you will spend your money each month?

Back

Budgeting

Front

Which of the following is an example of "income"? Options: The amount you owe to someone else, The money you receive from your job, investments, and stocks, The cost of borrowing money, The amount left after taxes

Back

The money you receive from your job, investments, and stocks

Front

If you borrow money from a bank and must pay it back over time, what is this called?

Back

Loan

Front

Which statement best describes "interest" in personal finance?

Back

The cost of borrowing money or the reward for saving/investing money

Front

Would all of your salary be taxed at 12% by the U.S. government? Why or why not?

Back

No, because the U.S. uses tax brackets and only a portion is taxed at each rate.

Front

Which of the following is a recommended first step when deciding how to spend your remaining monthly salary? Always do your savings first, Spend on food first, Pay for vacation first, Buy personal necessities first

Back

Always do your savings first

Front

What is the definition of 'interest' in the context of debt?

Back

The extra money you pay back in addition to the amount you borrowed

Front

Which of the following is considered "helpful" debt? Credit card debt for shopping, Payday loans, Student loans and mortgages, Gambling debt

Back

Student loans and mortgages