Financial Literacy

What does the term "income" refer to?

• A.

  Money that is borrowed from a bank

• B.

  Money that is earned from working

Tags

CCSS.L.2.4E

CCSS.L.3.4D

CCSS.L.6.4C

CCSS.L.7.4C

CCSS.L.8.4C

What does the term "deduction" refer to?

• A.

  Money that is taken out of your gross income

• B.

  Money that is added to your gross income

Tags

CCSS.RI.1.5

CCSS.RI.2.5

CCSS.RI.3.5

CCSS.RI.4.5

CCSS.RI.5.5

What does "gross income" refer to?

• A.

  The amount of money earned after taxes

• B.

  The amount of money earned before taxes

What is "net income" ?

• A.

  The total amount of money spent

• B.

  Money made after deductions are taken out

What is the gross income in the example of net pay calculation?

• $2,418

• $39,000

Tags

CCSS.7.RP.A.3

How much is deducted for Social Security tax in the example provided?

• $2,418

• $1,800

Tags

CCSS.7.RP.A.3

What is the net income after all deductions in the example of net pay calculation?

• $30,832.50

• $39,000

Tags

CCSS.7.RP.A.3

What is income tax?

• A.

  Money paid to the government based on money you earn

• B.

  A fee for using public transportation

What is payroll tax?

• C) A tax paid directly to the government by the employee

• B) Money that your job holds from your paycheck

Which taxes are included in payroll tax?

• A.

  Social Security and Medicare taxes (FICA)

• B.

  Income and property taxes