Personal Finance Unit

Most people work to earn money to pay for the things that they really need. Choose the best answer which represents things that people really need.

• shelter, food, clothes, healthcare, transportation

• two seat sports car, Starbucks coffee, iPhone X phone with an unlimited text & data plan

People work to earn money to pay for the things that they need and want. Identify another reason why people work. Choose the BEST answer

• Social Contact With Other People

• Personal Satisfaction & Enjoyment

• Something To Do Each Day

• Some people work to have social contact with other people, personal satisfaction & enjoyment, & to have something to do each day.

This is a fixed amount of money or compensation for work performed.

• Salary

• Wage

This payment may be calculated at an hourly rate or based on an easily measured quantity of work done.

• Salary

• Wage

A commission is a percentage of a sale paid to a salesperson. Sometimes a commission can include a base salary.

• True

• False

Banks like Wells Fargo & Citibank offer many services for consumers.

Their primary reason for being open is to earn a profit.

• True

• False

Many employers offer good compensation for their employees. A compensation can be fixed or variable.

Identify an example of a benefit.

• health insurance, life insurance, disability insurance

• paid vacation

• employee stock ownership plans, bonuses

• All of the answers listed are examples of benefits

Income before all taxes have been deducted is known as this.

• Gross Income

• Net Income

Income after taxes have been deducted is known as this.

• Gross Income

• Net Income

Taxes are automatically taken out of your paycheck. Which tax below is "specifically" used to support people who are disabled, unemployed, or over the age of 65?

• State Income Tax

• Federal Income Tax

• FICA (Federal Insurance Contributions Act)

• Local Income Tax