Managing Your Money

The main reason most of us work is to…

• get out of the house

• receive a paycheck

• make new friends

• buy a new car

Gross pay is:

• An amount of money too large to carry

• Your paycheck amount before deductions

• A really ugly-looking paycheck

• Your paycheck amount after deductions

Now let's figure Jose's gross pay. Jose earns $23,010 per year and is paid every two weeks. How much is Jose's gross pay per pay period?

• $442.50

• $500

• $885

• $1250

Deductions are:

• Items that are taken out of your paycheck

• The stub ends of your paycheck

• Those times you work for no pay

• Any overtime pay you receive

How does your employer figure the total of your deductions?

• usually guesses

• adds your required and optional deductions

• it's a certain percentage of your paycheck

• subtracts your taxes from your gross pay

Net pay is:

• The taxes that the employer keeps

• The amount you take home

• The extra money you receive for overtime

• Hourly pay rate times hours worked

Paul works in a florist shop. He works 35 hours per week and makes $8.00 per hour. He is paid every two weeks. His deductions total $89 per pay period. What is his net pay per pay period?

• $280.00

• $191.00

• $471.00

• $560.00

Susie's gross pay is $1275.00 per month. Her required deductions total $279.42 per month. In addition, she has asked the personnel office to deduct $78.00 per month for health insurance, $17.50 per month for savings, and $27.00 for repayment of her auto loan. What is Susie's net pay per month?

• $ 1275.00

• $ 873.08

• $ 995.50

• $ 978.08

Why is it important to develop a monthly budget?

• It will help make sure you can pay your bills.

• It will help you prioritize spending.

• It will help you use your money wisely.

• All of the above.

Which of the following is least important when determining your budget?

• overtime pay

• net pay

• anticipated expenses

• deductions