Personal Financial Literacy

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What is net worth?

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Net worth is the total value of an individual's assets minus their liabilities. It represents what a person owns minus what they owe.

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How do you calculate net worth?

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To calculate net worth, add up all assets (like cash, property, and investments) and subtract all liabilities (like loans and debts).

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What is federal withholding?

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Federal withholding is the amount of an employee's earnings that an employer withholds to pay federal income taxes on behalf of the employee.

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How do you calculate federal withholding?

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To calculate federal withholding, multiply the monthly income by the federal withholding rate (e.g., 15%).

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What is Social Security tax?

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Social Security tax is a payroll tax that funds the Social Security program, which provides benefits for retirees, disabled individuals, and survivors.

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How do you calculate Social Security tax?

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To calculate Social Security tax, multiply the monthly salary by the Social Security tax rate (e.g., 6%).

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What is Medicare tax?

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Medicare tax is a payroll tax that funds the Medicare program, which provides health insurance for individuals aged 65 and older.

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How do you calculate Medicare tax?

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To calculate Medicare tax, multiply the monthly salary by the Medicare tax rate (e.g., 3%).

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What is sales tax?

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

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How do you calculate sales tax?

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To calculate sales tax, multiply the purchase price by the sales tax rate (e.g., 6%).