Financial Literacy Terms

variable expenses

• Expenses that remain constant each month, such as rent or mortgage payments.

• Expenses that vary from month to month, such as entertainment, car repairs, or doctor bills.

• Expenses that are only incurred during the holiday season, such as gifts and decorations.

• Expenses that are fixed and do not change regardless of usage, such as insurance premiums.

paycheck

• A check given to an employee for earned income.

• A document that outlines an employee's job responsibilities.

• A form used to apply for a job position.

• A summary of an employee's performance review.

State Income Tax

• Tax paid to the state government, taken directly out of people's paychecks.

• A fee charged for using state parks and recreational areas.

• A tax levied on the sale of goods and services within the state.

• A tax imposed on property ownership within the state.

Paycheck Stub

• A document that summarizes your monthly expenses.

• A document attached to every paycheck that details your earnings and the amount withheld for taxes, health insurance, retirement funds, etc.

• A form used to apply for a loan.

• A report that shows your credit score and history.

Federal Income Tax

• A tax levied on the income of individuals and businesses to fund government operations.

• A payroll deduction collected by employers by law and sent to the federal government to support governmental programs.

• A tax on property ownership that is paid annually to local governments.

• A fee charged for the processing of tax returns by the IRS.

Expenses

• The money earned from investments.

• The cost required for something; the money spent on something.

• A type of financial asset.

• The total income generated by a business.

Deductions from paycheck

• Social Security tax

• Health insurance premium

• Property tax

• Retirement contribution

Gross pay

• The total amount you earn before any deductions are subtracted.

• The amount you take home after taxes and deductions.

• The total earnings from investments and savings.

• The salary amount agreed upon in your employment contract.

Health Insurance

• Insurance that covers medical illness or injury.

• A type of insurance for property damage.

• Insurance that provides life coverage.

• A plan that pays for dental care.

Net pay

• The total amount earned before any deductions.

• The amount of a paycheck after the deductions are taken out.

• The amount of taxes withheld from a paycheck.

• The gross income minus bonuses and overtime pay.