Personal Financial Literacy

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What is gross income?

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Gross income is the total income earned by an individual before any deductions or taxes are taken out.

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How do you calculate net pay?

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Net pay is calculated by subtracting total deductions from gross income.

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What is a property tax?

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Property tax is a tax assessed on real estate by the local government, based on the value of the property.

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What is a sales tax?

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Sales tax is a tax imposed on the sale of goods and services, typically calculated as a percentage of the purchase price.

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What is net income?

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Net income is the amount of money an individual has after all deductions, taxes, and expenses have been subtracted from gross income.

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What is a budget?

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A budget is a financial plan that outlines expected income and expenses over a specific period.

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What is the purpose of deductions in a paycheck?

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Deductions are amounts taken out of an employee's gross pay for taxes, benefits, and other purposes, reducing the net pay.

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What is the difference between fixed and variable expenses?

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Fixed expenses are costs that do not change from month to month (e.g., rent), while variable expenses can fluctuate (e.g., groceries).

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What is the importance of balancing a budget?

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Balancing a budget ensures that expenses do not exceed income, helping to avoid debt and financial instability.

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What is disposable income?

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Disposable income is the amount of money available for spending and saving after taxes have been deducted.