unit 1

Question 1

personal budget

Answer 1

guidline for spending your money

Question 2

step 1

Answer 2

pay rent/mortgage, home insurance

Question 3

step 2

Answer 3

create monthly groceries budget

Question 4

step 3

Answer 4

pay your essential utilities (electricity, water, gas)

Question 5

step 4

Answer 5

create your health care expenses budget

Question 6

step 5

Answer 6

pay the minimum payment on all debts and loans not an option

Question 7

step 6

Answer 7

pay your non essential monthly bills

Question 8

step 7

Answer 8

create a toiletries and incidentals budget

Question 9

step 8

Answer 9

put money into savings for emergencies (aim to have 1,000)

Question 10

step 9

Answer 10

pay the maximum amount allowed in your 401(k) (401(k) doubles your money

Question 11

step 10

Answer 11

pay off any debts with high interest rates

Question 12

step 11

Answer 12

put your money into emergency fund savings acc so that you have 3-6 month’s worth of living expenses

Question 13

step 12 (opt)

Answer 13

pay off any debts w/ moderate interest rates, between 5-10%

Question 14

step 13

Answer 14

invest in either a traditional IRA or Roth IRA (invest 15% of ur income each month)

Question 15

step 14(opt)

Answer 15

charity

Question 16

step 15

Answer 16

entertainment

Question 17

pay period

Answer 17

your statement shows the pay period for which you are

Question 18

gross income

Answer 18

pay before deduction that will typically not be the amount of your check/ automatic deposits

Question 19

net income

Answer 19

this is the amount you’re being paid after taxes, insurance, or other deductions have been subtracted from your gross income, and is the actual amount of your check or automatic deposit

Question 20

taxes

Answer 20

your statement also shows what taxes the employer is required to deduct from your pay. usually includes federal income taxes and in some states, state income taxes

Question 21

social security

Answer 21

you have to pay a social security contribution w/ each paycheck to fund your retirement

Question 22

medicare

Answer 22

you have to pay mediocre contribution w/ each paycheck to fund your medical care after retirement

Question 23

benefits

Answer 23

if you are a full-time employee receiving health insurance benefits you usually have to pay part of the cost of these yourself, and it’s often deducted from your pay

Question 24

other deductions

Answer 24

sometimes other deductions may be taken from your paycheck, union dues or contributions to savings and retirement loans that you choose when you are hired