Financial Literacy - Income, Employment, and Net Worth

Which is the greater amount?

• Net income

• Gross income

• It depends

• Net and gross income are the same thing

On a paycheck or paystub, YTD stands for __________

Which of these are the ways to increase your net worth? (Choose TWO answers!)

• Decrease your assets

• Increase your assets

• Decrease your liabilities

• Increase your liabilities

When the bank pays you to use your money (or you pay the bank to use its money), the money paid is called

• A paycheck

• An asset

• Net income

• Interest

What is a W-4 tax form for?

• Tell your job how much to withhold from your paycheck for taxes

• Tell your job how much money you earned at your last job

• Tell the government how much you earn at your current job

• Tell the government how much money you're paying in taxes

All of us need to pay state and federal _________, which the government uses to pay for social security, medicare, building roads, public schools, military funding, and more.

Drea's liabilities add up to $40,000. Her assets add up to $60,000. What is Drea's net worth?

• -$20,000

• -$100,000

• $20,000

• $100,000

True or False: On average, people with college degrees earn more money in their lifetime than people who don't finish college.

• True

• False

Which THREE of these answers could cause your net pay on a paycheck to be lower?

• Your net worth

• Federal taxes

• Money deducted for your retirement savings

• Money deducted for your gross income

• Money deducted to pay for your health insurance

People who claim LESS allowances on their W4 form have MORE money withheld from each paycheck. This means when they pay their taxes in March/April, they will owe the government ________ (more/less) money. They might even get a tax refund if they overpaid!