Personal Finance Module 2

1. All of the money that you earn or receive - from sources as your work, investments, inheritance, and government support programs

• Income

• Economic Value

• Empploymet

• Human Capital

Value that you create in society by either doing or making something that someone else is willing to pay for—such as a product or service

• Employment

• Human Capital

• Earning Potential

• Economic Value

A formal working relationship between a person and a company or organization, in which the person is hired on a long-term basis to perform work for the organization in exchange for compensation and benefits

• Human Capital

• Employment

• Earning Potential

• Income

The capacity that any individual worker has to provide value through their work—based on their level of skills, professional relationships, experience, and education

• Earning Potential

• Income

• Human Capital

• Employee

Your ability to make income from the work that you do; you can enhance this ability by gaining more skills, knowledge, experience, and connections in your career

• Earning Potential

• Independent Contractor

• Business Owner

• Income

A person who works for a company or organization and receives regular paychecks, along with other potential benefits and perks, in exchange for their work

• Independent Contractor

• Business Owner

• Employee

• Economic Value

A self-employed person who does freelance work on a contract basis—meaning they are hired to complete a specific project or provide certain services for a specific period of time

• Business Owner

• Independent Contractor

• Employee

• Employment

A self-employed person who may hire other workers and who sells their products or services directly to the market—as opposed to only being hired for specific projects

• Income

• Employee

• Independent Contractor

• Business Owner

A specified amount of money that an employee makes, most commonly on a yearly basis; it does not depend on how much time the employee works each pay period

• Hourly Wage

• Salary

• Commissions

• Tips

Income that an employee earns which is directly based on the amount of time that they work during a pay period

• Hourly wage

• Salary

• Commissions

• Tips