Personal Financial Literacy Module 1 DBA

When job searching, what are examples of non-income factors we want to consider?

• How we can negotiate the highest salary

• Whether or not our salary will change over time

• What perks each job offers such as benefits, bonuses and location

• Income is the most important factor. Nothing else is relevant when job hunting

If Frank wants to avoid student loans, one option might be to

• Join the military

• Take a reflection year

• Give up on going to college

What is the benefit of completing a Bachelors degree?

• Higher lifetime income potential

• More debt

• Fewer job opportunities

If there is a recession, what is true?

• There may be multiple job opportunities available

• We may receive a salary increase

• Businesses will be booming

• We may earn less money temporarily

What is a 401(k)?

• A type of income tax the government deducts from our paycheck

• A retirement savings account some companies offer

• A required account for retirement savings

• A deduction that covers medical expenses when we retire

What kind of tax would we pay for a new game system at WalMart?

• Corporate Tax

• Marginal Tax

• Sales Tax

• Property Tax

What is a progressive tax system?

• The higher the income, the higher the tax rate

• A system that is harder on lower incomes

• A tax system that is the same for all

What is an example of indirect tax?

• Sales Tax

• Estate Tax

• Real-estate Tax

• Income Tax

What is the difference between Gross and Net Income?

• Gross Income is money before taxes while Net is the amount we take home.

• Net income is the money before taxes while Gross Income is the amount we take home.

• Net income is always higher than Gross Income.

• Gross income is always the amount after deductions have been taken.

What is the FICA SS TAX deduction used for?

• This tax pays for schools and roads

• This tax pays for our medical costs when we retire

• This tax goes to our retirement savings account

• This tax pays for Social Security benefits when we retire