Economics

What is net income?

• The amount of money you can budget

• The money taken out of your pay (ie. taxes)

• Your take home pay. Gross income minus deductions

• The amount of money you make before deductions

What is gross income?

• The amount of money you can budget

• The money taken out of your pay (ie. taxes)

• Your take home pay. Gross income minus deductions

• The amount of money you make before deductions

What is deductions?

• The amount of money you can budget

• The money taken out of your pay (ie. taxes)

• Your take home pay. Gross income minus deductions

• The amount of money you make before deductions

Which of the following do you put in the INCOME part of your budget?

• Deductions

• Gross Income

• Net Income

• How much money you spend each month

What are expenses?

• The money you budget

• The amount of money you make

• The money that you spend

• The money taken out of your paycheck

What is a Savings Account?

• Where an investor pools together several people's money and invests it in stocks and bonds. Good if you don't have the money to diversify and want to make more money than a CD or savings account.

• Where you can deposit your money into a bank. You earn a small amount of interest off this investment method. You can access your money, but the bank will penalize you if you withdraw from it too much.

• You own part of a company. You may earn a dividend where you get part of the company's prot. You want to buy this when the price is low and sell when it's high.

• Where you can deposit your money into a bank for a specied amount of time to earn a higher amount of interest. You cannot touch your money during the time it is invested this way.

• When you loan money to a business or the government. You can cash it (after it matures) and get your initial payment back and your earned interest.

What is a Certificate of Deposit (CD)?

• Where an investor pools together several people's money and invests it in stocks and bonds. Good if you don't have the money to diversify and want to make more money than a CD or savings account.

• Where you can deposit your money into a bank. You earn a small amount of interest off this investment method. You can access your money, but the bank will penalize you if you withdraw from it too much.

• You own part of a company. You may earn a dividend where you get part of the company's prot. You want to buy this when the price is low and sell when it's high.

• Where you can deposit your money into a bank for a specied amount of time to earn a higher amount of interest. You cannot touch your money during the time it is invested this way.

• When you loan money to a business or the government. You can cash it (after it matures) and get your initial payment back and your earned interest.

What is a Bond?

• Where an investor pools together several people's money and invests it in stocks and bonds. Good if you don't have the money to diversify and want to make more money than a CD or savings account.

• Where you can deposit your money into a bank. You earn a small amount of interest off this investment method. You can access your money, but the bank will penalize you if you withdraw from it too much.

• You own part of a company. You may earn a dividend where you get part of the company's prot. You want to buy this when the price is low and sell when it's high.

• Where you can deposit your money into a bank for a specied amount of time to earn a higher amount of interest. You cannot touch your money during the time it is invested this way.

• When you loan money to a business or the government. You can cash it (after it matures) and get your initial payment back and your earned interest.

What is a Mutual Fund?

• Where an investor pools together several people's money and invests it in stocks and bonds. Good if you don't have the money to diversify and want to make more money than a CD or savings account.

• Where you can deposit your money into a bank. You earn a small amount of interest off this investment method. You can access your money, but the bank will penalize you if you withdraw from it too much.

• You own part of a company. You may earn a dividend where you get part of the company's prot. You want to buy this when the price is low and sell when it's high.

• Where you can deposit your money into a bank for a specied amount of time to earn a higher amount of interest. You cannot touch your money during the time it is invested this way.

• When you loan money to a business or the government. You can cash it (after it matures) and get your initial payment back and your earned interest.

What are Stocks?

• Where an investor pools together several people's money and invests it in stocks and bonds. Good if you don't have the money to diversify and want to make more money than a CD or savings account.

• Where you can deposit your money into a bank. You earn a small amount of interest off this investment method. You can access your money, but the bank will penalize you if you withdraw from it too much.

• You own part of a company. You may earn a dividend where you get part of the company's prot. You want to buy this when the price is low and sell when it's high.

• Where you can deposit your money into a bank for a specied amount of time to earn a higher amount of interest. You cannot touch your money during the time it is invested this way.

• When you loan money to a business or the government. You can cash it (after it matures) and get your initial payment back and your earned interest.