Personal Finance - 15. Review

To help you decide on a career, you should _____.

explore career options, take a self-assessment, apply the PACED decision-making process, and write goals.

Supply is the amount needed.

false

capital gains

income earned by the sale of assets, such as stocks or property, the gain of which is the difference between the price paid and the selling price

Adults pay _____ taxes.

income, property, and sales

dividends

money paid from a company's earnings to people who own stock in that company

wages

money that is received for work

interest

money the bank gives you when you keep your money in one of their accounts

employee benefits

perks that a company provides its employees, for example, health insurance or providing a retirement plan

profit

revenue minus costs

Floods, product failure, change in demand, and ineffective sales are all examples of _____.

risks

dependent

someone, usually a child, who depends on another individual for food, shelter, and other necessities

rewards

something that causes or increases personal satisfaction

risks

something that causes the possibility of a loss

Tips, bonuses, and capital gains are all _____.

sources of income

net pay

take-home pay, that is, the portion of the wages that the employee actually gets to take home

supply

the amount available

demand

the desire or need for a product or service

revenue

the income a business makes

income

the money received for work or products sold and from other sources, such as rent or investments

costs

the price paid to acquire, produce, or accomplish something

A career goal should be measurable, detailed, and include a plan

true

Theresa just graduated from high school. She is making career decisions. What criteria should she consider?

work location, salary, daily tasks, work schedule, and job outlook

Select all that apply. The purpose of taxes is to _____.

- provide police protection - pay for roads and road maintenance - provide judges and a court system

Select all examples of employee benefits

- stock purchase plan - bonus - group health plan - tuition reimbursement

Shawn made $32,500 last year. He is single with no children. He does not have any deductions to itemize. He should use the _____ to file his tax return.

1040EZ tax form

What is important to know about yourself when making a career choice?

Salary, location, work hours, education, interest and hobbies, and anything that can relate to the occupation.

Name three or four public services that are made available through the revenue from taxes.

- Military - Emergency Services (Police, Fire, EMS) - Public education - Department of Justice

FICA

Federal Insurance Contributions Act, more commonly known as Social Security; a portion of your wages is withheld by the government and set aside for retirement benefits

After the end of the year, you can expect to receive a form from your employer stating how much you earned and how much you paid in taxes for the year. This form is the _____.

W-2 form

Medicare

a federal program that pays for health care for people age 65 and older

commission

a fee paid to employees for their sale or services, the amount of which is usually based on a percentage of the sale price

salary

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

entrepreneur

a person who takes a risk to create a new product or develop a better way to operate a business

occupation

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

W-4 form

a tax form prepared by an employee for the employer to specify exemptions and determine the amount of taxes to be withheld from the employee's paycheck

W-2 form

a tax form that an employer sends to employees after the end of the year to list income and amount paid in taxes

tax return form

a tax form that an individual completes to file taxes and calculate how much is owed to or refunded by the IRS

withholding allowances

an amount an individual enters on W-4 form that helps and employer calculate the amount of income tax to subtract from an employee's paycheck

deduction

an amount that is subtracted

gross pay

an employee's total pay including overtime pay, commissions, and bonuses before any deductions are made

stockholder

an individual who owns one or more shares of stock in a joint stock company

career

an occupation or profession that usually requires special training

Allison sells pharmaceuticals. She earns twelve percent of every sale. This is a _____.

commission

Employee salaries, equipment purchases, consultant fees, and legal fees are all examples of _____.

costs

Rachel's paycheck stub shows an amount that was subtracted from her pay for health insurance. This is a _____.

deduction