Income as a Scare Resource

What is a key characteristic of an hourly wage?

• Paid a fixed amount annually

• Includes mandatory deductions

• Paid per hour worked

• Not subject to overtime

Which type of income requires self-employment tax payments?

• Salary

• Tips

• Dividends

• • Independent Contractor (Form 1099)

What is the standard deduction for a single filer in 2024?

• $12,000

• $14,600

• $15,000
  

• $18,500

What is the difference between gross pay and net pay?

• Net pay includes bonuses

• Gross pay is before deductions, net pay is after

• Gross pay is deposited in your account

• Net pay is before taxes

What financial tool helps track income and expenses?

• Investment portfolio

• Budget

• Credit report

• Mortgage statement

Why is reconciling a bank account important?

• To increase credit score

• To compare bank statements with records

• To avoid paying taxes

• To increase net worth

Which of the following is a fixed expense?

• Groceries

• Rent

• Entertainment

• Clothing

What is included in taxable income on a Form 1040?

• Wages, 1099 earnings, dividends

• Grocery expenses

• Loan payments

• • Personal gifts

What is the purpose of an emergency fund?

• To invest in stocks

• To cover unexpected expenses

• To cover expected expenses

• To pay off credit cards

How is net worth calculated?

• Total assets minus total liabilities

• Monthly income times annual salary

• Amount of money in a savings account.

• Debt minus investments