Paycheck and Budget Terms Assessment

_______________________________ - an employee's total earnings before taxes and other deductions.

_______________________________ - an employee's take home pay after taxes and other deductions have been subtracted.

• Net pay

• Gross pay

• Bonus

• Commission

________________________ - a plan for spending and saving money based on your income and expenses for a set period of time.

• Budget

• Loan

• Deposit

• Tax

_______________________________ wages withheld from an employee's total earnings for the purpose of paying taxes, garnishments and benefits, like health insurance.

• Deductions

• Bonuses

• Allowances

• Commissions

_______________________________ - expenses you have already agreed to pay and must be paid by a particular date. Examples include rent/mortgage for housing, car payment.

• Fixed expenses

• Variable expenses

• Discretionary expenses

• Irregular expenses

_______________________________ expenses that vary (change) each month. Examples include groceries, electricity, gas, water, utilities.

• Variable expenses

• Fixed expenses

• Discretionary expenses

• Irregular expenses

________________________ things that people require to survive. Examples include Food, water, clothing, and shelter.

• Needs

• Wants

• Luxuries

• Desires

________________________ things that a person would like to have but are not needed for survival. Examples include expensive shoes, or the most recent electronics.

• Wants

• Needs

• Essentials

• Necessities

50/30/20 plan for preparing a budget: ________% of your take home pay should go towards needs, ________% should go towards wants and ________% for savings and debt repayment.

• 50% needs, 30% wants, 20% savings and debt repayment

• 30% needs, 50% wants, 20% savings and debt repayment

• 20% needs, 30% wants, 50% savings and debt repayment

• 40% needs, 40% wants, 20% savings and debt repayment