Ramsey Classroom 10.2

Earned Income

• Money that is received as a gift or inheritance

• Money that is earned through investments

• Money that is received from government assistance programs

• any income (wages/salary) that is generated by the work someone performs

Wage

• money paid by the hour and for an agreed number of hours per week; especially for unskilled or manual labor​​​​​​​

• A salary, which is a fixed amount of money paid periodically for a job.

• A bonus, which is an extra payment given to employees as a reward for good performance.

• A commission, which is a payment based on a percentage of sales or profits.

Minimum Wage

• The lowest amount of money an employee can receive as a bonus

• the smallest amount that employers can legally pay their employees per hour of work​​​​​​​

• The maximum amount of money an employee can receive as a salary

• The amount of money an employee must pay in taxes each year

Salary

• The amount of money a company pays for goods or services.

• A payment made to an employee in exchange for their labor.

• a fixed annual amount earned by an employee, typically paid weekly, biweekly, or monthly​​​​​​​

• A payment made to an individual in exchange for their services.

Passive Income

• Money earned through investments

• Money earned through a job

• Money earned through a one-time sale

• money earned on a regular basis with little or no effort required to maintain it​​​​​​​

Portfolio Income

• Income from a job

• income from an investment sold at a higher price than you paid for it ​​​​​​​

• Income from a loan

• Income from a savings account

Paper Asset

• A physical asset such as a car or house

• A financial instrument such as a loan or mortgage

• a representation (on paper) of stocks, bonds, currencies, mutual funds, etc.

• A digital asset such as a website or software program

When you start a job, you have to fill out Form _____to let your employer know how much tax to withhold from your pay.

• 1040

• I-9

• W-4

• W-2

If too much is withheld, you’ll end up getting a ______—which means you’ve given the government an interest-free loan.

• deduction

• penalty

• credit

• refund

If too little is withheld, you’ll end up ______the government money.

• Saving

• owing

• Investing

• Lending