-
amount you can subtract from the taxes you owe, if you are eligible
tax deduction
-
usually a two-year school offering both academic & occupational courses
community colleges
-
physical & mental skills developed through learning, training, and practice
abilities
-
wage and tax statement, it is usually mailed to your home and states the amount you were paid during the previous year and the amount of taxes that were withheld
W-2
-
outline of jobs in a given career field that have different levels
career ladder
-
benefit that reduces the amount of income that is taxed
tax credit
-
an outline of steps or action you can take to reach a career goal
career plan
-
nonmenetary compensation received in addition to a wage or salary
benefits
-
payment for work and is usually computed on an hourly, daily, or piecework basis
wage
-
wage based on a rate per unit of work completed
piecework income
-
prepares you for a specific type of work, is available through a variety of schools and programs in addition to online offerings
apprenticeship
-
payment and benefits received for work performed
compensation
-
governement payment or benefit promised by law to eligible citizens
entitlement
-
expense that can be subtracted from taxable income
tax deduction
-
combining of on-the-job training, work experience, and classroom instruction
apprenticeship
-
federal program that provides income when earnings are reduced or stopped because of retirement, serious illness or injury, or death
social security
-
federal program that pays for certain health care expenses for older citizens and others with disabilities
medicare
-
government program that pays certain health care costs for eligible low income individuals and families
medicaid
-
employee's witholding allowance certificate, it tells your employer how much to withhold from your paychecks as payroll deductions
W-4
-
money paid for service beyond what is required
tip
-
natural physical and mental talents
aptitude
-
the process of setting up and maintaining an organized system for your financial affairs
recordkeeping
-
the concept that you do not spend more than you can afford
common sense rule
-
the understanding of the basic knowledge and skills needed to manage financial resources
financial literacy
-
taking an active role in preparing for your present and your future through smart money decisions
financial planning
-
when expenses exceed income
deficit
-
the amount by which income exceeds expenses
surplus
-
difference between planned spending and actual spending
budget variance
-
deductions from earnings
withholdings
-
a spending plan of expected income and expenses over a period of time
budget
-
5 steps in the decision making process
- 1. define problem
- 2. explore alternatives
- 3. choose best one
- 4. act on it
- 5. evaluate it
-
Explain: Pay Yourself First
Putting money into savings immediately, so in case of an emergency you have it readily available.
-
SMART:
- Specific
- Measurable
- Attainable
- Realistic
- Time Frame
-
Chief advantage of a budget:
it can help you make the most of your money and avoid financial problems
-
Fixed expenses include:
installment payments, insurance premiums, and rent
-
NSF Fee
a penalty fee charged when you write a check for more than you have in your account, the check is NOT honored
-
Overdraft fee
a penalty fee that your bank may charge when you write a check for more than you have in your account, yet they still cover the check
-
a process of comparing the bank statement balance to the check register to update the records a tthe end of a moth
reconciliation
-
an endorsement that includes only the name of the individual whom the check was written to
blank endorsement
-
"for deposits only by" on endorsement
restrictive
-
an endorsement with "pay to the order of"
selective/special
-
the least amount of money your bank requires to be maintained to avoid fees
minimum balance
-
the monthly fee charged by banks to keep your account up to date
check fee
-
both signatures required on check
co-signature
-
either signature on check
joint signature
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