Intro to Personal Finance

What is income?

• Money coming into your bank account

• Money from taxes

• The total of money from your savings

• The amount of money you make in a year

Give examples of fringe benefits.

• Free memberships offered from coworkers

• Free snacks in the break room
• Examples of fringe benefits include health insurance, retirement plans, paid time off, and employee discounts.
• Flexible work hours

What makes fringe benefits more lucrative?

What are dividends?

• Dividends are loans taken by the company.
• Dividends are taxes paid by the government.

• Dividends are the total income of a company.

• Dividends are payments made to shareholders from a company's profits.

What is gross income?

• amount of money someone gets paid

• amount money someone is offered

• amount of money every coworker is paid in total for the year

• amount of money your parents get paid

What is disposable income?

• Disposable income is the income available to an individual or household after taxes and other mandatory deductions.
• Disposable income is the income received from investments only.
• Disposable income is the amount spent on luxury items.
• Disposable income is the total income before any deductions.

What is discretionary income?

• Discretionary income is the amount spent on school tuition.

• Discretionary income is the income available for spending after necessary expenses are deducted.
• Discretionary income is the total income before food.

• Discretionary income refers to income earned from high-profile jobs only.

Five Financial Literate Questions Everyone Asks

• Price, Quality, Features, Warranty/Service, Sales/Discounts

• What is the fastest way to get rich?, Quality, Expiration Date, Good enough, Portable

• How do I avoid paying taxes?, Price, Sales/Discounts, Will it work for my friends?, Can I write on it?

• What is the best way to spend money?, Warranty/Service, Can I buy it later?, Is it useful for all genders?, Taste

What is a budget?

• A budget is a type of investment strategy to be able to become rich.

• A budget is a document for tracking personal goals.
• A budget is a list of all assets owned by your company.

• A budget is a financial plan for managing income and expenses.

Why do governments have budgets?

• Governments have these to see what levels of revenue and expenses are to adjust fiscal policy

• To avoid financial planning
• To increase taxes on citizens
• To fund private businesses