Financial Literacy

Front

What is net income?

Back

Net income is the amount of money a person takes home after taxes and deductions are subtracted from their gross income.

Front

What is gross income?

Back

Gross income is the total amount of money earned before any taxes or deductions are taken out.

Front

What is income tax?

Back

Income tax is a tax that the government takes from a person's earnings.

Front

What is payroll tax?

Back

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

Front

What does a balanced budget mean?

Back

A balanced budget means that a person or organization is spending the same amount of money that they are earning.

Front

What are deductions?

Back

Deductions are amounts that are subtracted from a person's gross income, such as taxes and other fees.

Front

What is a budget?

Back

A budget is a plan that outlines how much money a person will earn and how much they will spend.

Front

What is a debit?

Back

A debit is an amount of money taken out of an account.

Front

What is a credit?

Back

A credit is an amount of money added to an account.

Front

What is sales tax?

Back

Sales tax is a tax added to the price of goods and services at the time of purchase.