Unit 2

Question 0

Income

Answer 0

Any money you recieve

Question 1

Spending Plan/Budget

Answer 1

A spending plan for managing money during a given period of time

Question 2

Federal income tax

Answer 2

Payroll deduction collected by employers bylaw and sent to the federal gov. To support governmental programs

Question 3

State income tax

Answer 3

A payroll deduction collected by employers by law and sent to the state government to support state services

Question 4

Social security Tax

Answer 4

A payroll deduction collected by employers by law and sent to the federal government to provide a small income and other services to the elderly, disabled Americans, and orphaned minors

Question 5

Medicare tax

Answer 5

Payroll deduction collected by employers by law and sent to the federal government to provide medical insurance to the elderly and to some disabled Americans

Question 6

Gross income

Answer 6

The total amount of income from wages before any payroll deductions

Question 7

Net income

Answer 7

Also called “take home pay”, it’s the amount of income left after payroll deductions

Question 8

Expenses

Answer 8

.An amount of money spent to buy or do something

Question 9

Fixed expenses

Answer 9

Expenses that cost the same amount every time

Question 10

Variable expenses

Answer 10

Expenses that are not fixed

Question 11

Periodic/occasional expenses

Answer 11

Expenses that aren’t paid every month, and can be either fixed or variable

Question 12

P.Y.F (pay yourself first)

Answer 12

Taking a certain amount of all the money you receive and saving it to be used for spending on longer term goals