Understanding Income and Payment Methods

The video tutorial covers the concept of income, differentiating between gross and net income. It explains how deductions like taxes and insurance affect net income. The tutorial also discusses saving income for purchases and explores four payment methods: cash, cheque, debit card, and credit card. Each method's advantages and disadvantages are highlighted, with a focus on managing money effectively and understanding the implications of using credit cards.

What is the term for the total amount of money earned before any deductions?

• Gross Income

• Net Income

• Taxable Income

• Disposable Income

If you work 30 hours a week at $10 per hour, what is your gross income?

• $350

• $250

• $300

• $200

What is the term for the actual money you receive after deductions?

• Gross Income

• Net Income

• Disposable Income

• Taxable Income

Which of the following is NOT typically deducted from your paycheck?

• Medicare

• Grocery Bills

• Federal Taxes

• Insurance

What is one way people use their net income?

• To determine tax rates

• To pay for purchases

• To increase gross income

• To calculate gross income

Which payment method requires you to have the money available immediately?

• Cash

• Check

• Credit Card

• Loan

What is a disadvantage of using cash for large purchases?

• It's secure

• It's immediate

• It's bulky

• It's traceable

What happens if you write a check without sufficient funds in your account?

• The check is processed

• The check bounces

• The check is voided

• The check is delayed

What is an advantage of using a debit card over a check?

• It has a delay

• It requires a signature

• It's immediate

• It's slower

What is a risk associated with using credit cards?

• Immediate payment

• No interest

• Overspending

• No minimum payment