Review Midterm/Final Fall 2024

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What is a budget?

Back

A budget is a plan for using your money in a way that meets your wants and needs.

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What is gross pay?

Back

Gross pay is the total amount of money earned by an employee before any deductions.

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What is federal income tax withholding?

Back

Federal income tax withholding is the amount of an employee's earnings that is withheld by the employer to pay federal taxes.

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What is net pay?

Back

Net pay is the amount of money you have left after your employer subtracts all withholdings and deductions.

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What is a repayment schedule?

Back

A repayment schedule shows the distribution of principal, interest, and other charges over the life of a loan.

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What does 'time and a half' mean?

Back

'Time and a half' refers to the pay rate for hours worked over 40 in a week, which is 1.5 times the regular hourly rate.

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What are allowances in tax withholding?

Back

Allowances are used to determine how much federal income tax should be withheld from an employee's paycheck.

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What is the difference between gross pay and net pay?

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Gross pay is the total earnings before deductions, while net pay is the amount received after deductions.

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What is the purpose of a budget?

Back

The purpose of a budget is to help individuals plan and control their spending to meet financial goals.

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What factors affect federal income tax withholding?

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Factors include filing status, number of allowances claimed, and additional withholding requests.