Chapter 11 - Personal Finance Review

Resume

A brief account of one's professional or work experience and qualifications

Social Security

A federal insurance program funded by taxpayer dollars that provides benefits to people who are retired, unemployed or disabled

Cover Letter

A letter that is always accompanied by a resume; used to inform a prospective employer of your interest and capabilities as they relate to a specific employment opportunity

What are some important things to do when interviewing for a job?

Answers will vary but might include; present yourself well, arrive 10-15 minutes early, dress professionally, be yourself, be organized, etc.

Why is it different to understand different personality styles?

Answers will vary; Example - It is important that people will work in their strengths so that they may be happy and fulfilled in what they do; you should find work that blends your individual skills, abilities, personality traits, values, dreams and passions.

Earned Income

Any income (wages/salary) that is generated by working

Sales tax and excise tax are both taxes on what?

Consumption

Taxes are an optional contribution to local, state and federal governments.

False.

What is the difference between gross and net income?

Gross income is what you make before any deductions. Net pay is what is left after taxes, health benefits, and other deductions are taken out of your check.

Portfolio Income

Income generated by selling an investment at a higher price than you paid for it

Passive Income

Money earned on a regular basis with little or no effort required to maintain it. Some things that produce passive income are real estate, intellectual property like books or internet content, or a business in which the owner is not actively involved. Passive income often allows for the most favorable tax treatment.

What is the difference between gross pay and net pay?

Net pay describes your pay after deductions; gross pay is before

The Internal Revenue Service (IRS) is the federal government agency responsible for what?

Tax collection and tax law enforcement

Property Taxes

Taxes paid by anyone who owns property such as land, a home, or commercial real estate

Income Tax

Taxes paid out by anyone who earns an income

Personal Branding

The process by which we "market" ourselves to others; involves highlighting personal strengths, interests, and unique qualities and identifying goals.

Once you've defined your dreams, your goals should be the practical application of how you're going to accomplish your dream.

True.