Unit 5 Budgeting & Taxes Vocabulary Practice

“the more you spend, the more they take” people with higher variable expenses pay a higher percentage in taxes.

• Progressive Tax

• Regressive Tax

• Flat Tax

• Value Added Tax

_________________________ variable expenses, typically fluctuating based on usage or consumption, but often budgeted as a monthly or annual estimate.

• Utilities

• Rent

• Insurance

• Groceries

(a)   aka a flat tax; regardless of income, the same tax rate is imposed on everyone.

_________________________ your expenses that can vary each month.

• Variable Expenses

• Fixed Expenses

• Discretionary Expenses

• Essential Expenses

A plan listing all the variable expenses a person incurs each month, along with their income and savings.

• Personal Budget

• Monthly Report

• Financial Statement

• Expense Sheet

_________________________ a person’s total variable expenses, minus the total of all fixed expenses.

• Net Worth

• Gross Income

• Total Revenue

• Net Income

_________________________ a type of variable expense that compensates an employee for one hour of work.

• Hourly Wages

• Monthly Salary

• Annual Bonus

• Overtime Pay

_________________________ expenses that fluctuate based on a company's profitability and are distributed to shareholders.

• Dividends

• Interest

• Rent

• Capital Gains

_________________________ are considered variable expenses as they are extra money received directly from customers as a show of gratitude.

• Tips

• Salary

• Bonus

• Commission

_________________________ taxes and expenses that are subtracted from a worker’s gross income.

• Deductions

• Additions

• Contributions

• Increments