Income and Expense

What is an Income and Expense Statement?

• lists and summarizes income and expense transactions that have taken place over a specific period of time, usually a month or year
• Housing payment (rent or mortgage), Utilities, Property taxes, Maintenance, Household furnishings, Home/renter’s insurance 
• Groceries, meals eaten in a restaurant, snacks bought away from home, kitchen supplies
• health insurance, property and liability insurance (for home or automobile), life insurance, and disability insurance.

What is income?  

• Vehicle loan payment, Fuel, License and registration, Repairs and maintenance, Insurance, Public transportation
• any kind of money that you receive.
• record in writing, Smartphone, keep receipts, depository institution account statements, money management computer software program
• workers compensation, scholarships/grants from government sources

What is gross income?

• Federal income and state income tax Social Security Medicare
• record in writing, Smartphone, keep receipts, depository institution account statements, money management computer software program
• ALL of the money you receive BEFORE taxes or other expenses.
• a product that transfers risk from an individual to an insurance company or organization

What is net income?

• Federal income and state income tax Social Security Medicare
• Housing payment (rent or mortgage), Utilities, Property taxes, Maintenance, Household furnishings, Home/renter’s insurance 
• Groceries, meals eaten in a restaurant, snacks bought away from home, kitchen supplies
• money that remains AFTER taxes and other mandatory expenses.

What are some examples of earned income?

• Wages or salary before deductions, commissions/tips/bonuses, tax refunds
• money that you spend
• any portion of income that is saved or invested for future use
• Tuition , Private lessons/Tutoring , Supplies

What are some examples of unearned income?

• a product that transfers risk from an individual to an insurance company or organization
• Federal income and state income tax Social Security Medicare
• Interest earned during time period, money earned from investment during time period, sales of assets, money from savings and investments to help pay unforeseen expenses
• Income - expenses = net gain (positive number)  or net loss (negative number)

What are some examples of received income from government programs?

• a product that transfers risk from an individual to an insurance company or organization
• Vehicle loan payment, Fuel, License and registration, Repairs and maintenance, Insurance, Public transportation
• record in writing, Smartphone, keep receipts, depository institution account statements, money management computer software program
• workers compensation, scholarships/grants from government sources

What are expenses?

• Tuition , Private lessons/Tutoring , Supplies
• money that you spend
• cell phone, internet service, cable/satellite television, laptop
• record in writing, Smartphone, keep receipts, depository institution account statements, money management computer software program

What taxes are recorded on the Income and Expense Statement?  

• a product that transfers risk from an individual to an insurance company or organization
• Federal income and state income tax Social Security Medicare
• Groceries, meals eaten in a restaurant, snacks bought away from home, kitchen supplies
• child care, allowances, care for other dependents

What is savings?

• any portion of income that is saved or invested for future use Retirement investments 
• a product that transfers risk from an individual to an insurance company or organization
• Vehicle loan payment, Fuel, License and registration, Repairs and maintenance, Insurance, Public transportation
• cell phone, internet service, cable/satellite television, laptop