WorksheetsW!SE Review - Money Management
Total questions: 13
Worksheet time: 10mins
A federal government program that ensures retirement funds for all citizens of the United States. Funds for this program are contributed by workers through a payroll tax called FICA.
Medicaid
State Income Tax
Social Security
Medicare
An example of a variable expense in your monthly budget:
Rent
Food
Cell phone bill payment
Car payment
Calculate your net worth by:
Add up all of your fixed expenses and then subtracting them from your variable expenses
Add up all of your assets and then subtracting them from all of your liabilities
Add up all of your liabilities and then subtracting them from all of your assets
Add up all of your expenses and then subtracting them from all of your income
Most assets lose their value over time. For example, a new car loses some of its value as soon as the car is driven off the lot. This is called
Appreciation
Liquidation
Conservation
Depreciation
An individual retirement plan used with money before it has been taxed (pre-tax). This money will be taxed when you start withdrawing it at retirement.
401K
Traditional IRA
Roth IRA
Pension
A defined benefit retirement plan paid for entirely by your employer. The benefit is based on your age at retirement, your years of service, and you average wages. It favors older workers.
Roth IRA
Traditional Pension Plan
Traditional IRA
401K
When the value of your liabilities is greater than the value of your assets, you are considered
Solvent
Upside down on your mortgage
Underwater on your car payment
Insolvent
An individual retirement plan used with money that has already been taxed (after-tax money). When you withdraw it at retirement, the money is not taxed again (no taxes at retirement).
Roth IRA
Traditional IRA
Pension
401K
An example of a fixed expense in your monthly budget:
Food
Car payment
Clothing expenses
Electricity bill
This type of retirement plan offered by employers is called a defined contribution plan. It favors younger workers who switch jobs frequently because they can "rollover" their money to another employer or to a traditional IRA. Employees contribute most of the money to this plan making it less expensive for employers.
401-K Plan
Roth IRA
Traditional IRA
Traditional Pension Plan
A budget deficit occurs when:
Spend less money than you have coming in
Spend more money than you have coming in
Spend less than you planned for food in your budget
Spend the same amount of money that you have coming in
You should include in your monthly budget a set amount for savings (set a goal to save 10% of each paycheck). This is called:
Pay Yourself First
Pay as You Go
Buy and Hold
Live Within Your means
Which form do you complete when you start a new job to determine the number of allowances for tax withholding? Employers will use this information to withhold the right amount of taxes from your paycheck.
W2 Form
1040 Form
1040 EZ Form
W4 Form
