Personal Finance: Taxes and Cash Flow

What is negative cash flow?

• Spending more money than you make

• Money earned from investing in a stock market

• Money you inherit

• Money you get back from the government

What is a positive cash flow?

• Donating money to charity

• spending less money than you make

• investing in the stock market

• getting money back form the government

What is an income tax?

• The tax people pay on items they buy

• The tax people pay for driving on highways

• The tax people pay on the amount of money they make

• The tax people pay on their properties

What are payroll deductions?

• The amount of money an employer gives to his/her employees

• The amount of money an employer takes from a paycheck for mandatory expenses

• The amount of money taken for employee training

• The amount of money an employer steals from his/her employee

People have the option of making voluntary deductions from their paychecks.

• True

• False

An example of a voluntary deduction is:

• Social Security

• State Income Tax

• Federal Income Tax

• A charity

Net pay is defined as:

• The amount of money spent on fishing nets

• The amount of money made after taxes

• The amount of money made at the end of every month

• The amount of money spent on taxes

A way in which the local government spends tax money is....

• libraries

• police and fire departments

• road repairs

• All of the above

A way in which the federal government does NOT spend tax dollars is....

• military defense

• social security

• politicians' vacations

• welfare programs

Which of the following is NOT a way to be smart with one's money?

• Driving a gas guzzling car

• Save it

• Don't buy items you cannot afford

• Live with roommates to split the housing cost