Personal Financial Literacy: Unit 2

A withholding allowance is _____.

an amount you enter on a W-4 form

Mr. Stanley started a new business and created a product that raises the standard of living for people who use wheel chairs. Mr. Stanley may be considered _____.

an entrepreneur

Exempt means you _____.

are free from deducting federal income tax from paychecks

something that causes or increases personal satisfaction

rewards

When an individual starts a new business, there are _____.

risks and costs

Your career choice, education, and skills will affect your _____.

salary

a fixed amount of money periodically paid to a person for work

salary

Jeff works as a computer repair technician. He has money in a savings account and he owns some stock. What types of income does he have?

salary, interest, and dividends

The local government uses property taxes to pay for ______________________________________.

goods and services in the community

Matt expects to get his first paycheck today. What deductions may be listed on his paycheck stub?

-federal tax -social security -state tax -Medicare

When making a career decision, you should reflect on your _____.

-values -skills -personality traits -interests

How do cities and towns get money to pay for places and services for the community?

Cities and towns collect property taxes.

An employer takes a deduction from your paycheck for federal taxes. Where does this money go?

The money is sent to the federal government to pay for goods and services for the community.

Molly is getting ready to file her tax return. She works and has a savings account. What tax forms does she need?

W-2 form from her employer, tax forms from the bank, and a tax return form

the price paid to acquire, produce, or accomplish something

costs

an amount that is subtracted from your paycheck

deduction

Lisa owns stock in Company ABC. Company ABC sent out an earnings report and gave each of the stockholders an amount of money based on how much stock they owned. This is a _____.

dividend

perks provided by your employer

employee benefit

An example of an ongoing cost is _____.

employee salaries

When the revenue for a business is _________ than its costs, it's making a profit.

more

the portion of the wages that the employee actually gets to take home

net pay

a person's usual work or business; a way of earning a living

occupation