Personal Finance and Economics Final Review

A chart that documents how much money you earn and how much money you spend is called a(n)

• budget

• W-2

• W-4

• paystub

All are examples of flexible incomes except

• Babysitting when needed

• Dog walking when needed

• Teaching at Easton Area High School

• Waitressing when the restaurant is short on workers

All are examples of fixed expenses except

• Mortgage

• Car Payments

• Student Loans

• Groceries

While needs are necessities of life, they can vary depending on the person and the situation.

• true

• false

If bills are expenses, taxes are

• Cash flow

• Deductions

• Expenses

• Net Pay

If cash flow is the relationship between income and expenses and you spend more money than you have coming in, you will have a ___________ cash flow.

• Positive

• Fixed

• Negative

• Flexible

What is true about gross and net pay?

• Gross pay is before deductions

• Net pay is also called take-home-pay

• Gross pay is larger than net pay

• All statements are true

Money collected by the federal government to provide health insurance benefits in retirement, and to certain individuals with disabilities or serious illnesses is

• Medicare

• Medicaid

• Social Security

• Life Insurance

A type of retirement savings account where money is deposited directly by an employer and is not federally taxed until withdrawn in retirement. Individuals can choose how much to invest and, as a benefit, some employers offer to match the amount of money employees contribute. This is called a

• IRA

• 401(k)

• 403(b)

• Pension

What taxes do we pay?

• Federal, State, and Local Tax

• All of the answers given

• Medicare and Social Security

• Sales Tax