WorksheetsPersonal Finance and Money Management unit 2
Total questions: 42
Worksheet time: 21mins
Why do paychecks matter?
Helps create budgets
Shows how taxes and benefits impact income
Builds understanding of personal financial situation
Develops financial literacy skills
Federal Income Tax: Funds federal programs
Gross Pay: Total earned before deductions
What is income?
The money you own already.
The money you receive in exchange for work or investments.
The money that you get from your bank account.
The money you get from the government.
Net Pay: "Take-home pay" after deductions
Interest - Money earned from lending your money (savings accounts, bonds).
True
False
An example of interest would be?
The bank gives you money for having a debit card.
The bank pays you for spending money in a savings account.
The bank pays you interest for keeping money in a savings account.
Your friend pays you for lending them money.
Dividends - A share of company profits paid to shareholders.
Example of a dividend?
Owning a stock in Nike-> company pays you all of its profit.
Owning a stock in Disney-> company pays you most of its profit.
Owning stock in Apple -> company pays you part of its profit.
Owning a stock in Home Depot-> losing money.
Capital Gains - Profit made when you sell an asset for more than you paid.
Example of capital gains?
Buy stock for $50, sell it for $80 -> gain $30
Buy stock for $50, sell it for $40 -> lose $10
Buy stock for $100, sell it for $120-> gain $20
Buy stock for $100, sell it for $90 -> lose $10
Investments - Putting money into something with the goal of growing it.
Investments can include?
Stocks
Real estate
Mutual funds
Crypto
Risk and reward vary depending on type of investment.
Earned Income: Money from working
Earned Income examples?
wages
salaries
tips
commissions
Unearned Income: Money from investments or assets
Examples of unearned income?
Capital gains
Rental property
Dividends
Interest
Purpose/purposes of income?
Cover expenses
Save
Build wealth
All of the above
FICA: Social Security and Medicare
Different types of income are taxed differently
Entrepreneurship means creating your own business
Potential advantages of entrepreneurship?
Complete professional independence
Unlimited earning potential
Creative control
All of the above
Potential challenges of entrepreneurship?
Financial uncertainty
Higher personal responsibility
No guaranteed income
All of the above
Career risk spectrum:
Full-time jobs: lower risk (stable income + benefits)
Full-time jobs: higher risk, potential greater rewards
Entrepreneurship: lower risk (stable income + benefits)
Entrepreneurship: higher risk, potential greater rewards
Risk: The chance something may not turn out as expected
Passive income generates money with minimal ongoing effort
Passive income examples?
Rental properties
Stock market investments
Online content creation
Affiliate marketing
Job satisfaction: How much you dislike your work
Indicators of job satisfaction?
Feeling challenged intellectually
Experiencing personal fulfillment
Being proud of your work contributions
All of the above
Full-time employment:
40+ hours per week
Less than 40 hours weekly
Fewer or no benefits
Typically includes benefits
Part-time employment:
40+ hours weekly
Less than 40 hours weekly
Fewer or no benefits
Typically includes benefits
Self-employment:
Working independently
Working in a team
Managing own business
Managing someone else's business
Factors to consider when choosing a career:
Financial compensation, personal satisfaction, work-life balance, professional growth potential, and personal values alignment.
Gross pay, net Pay, and loss of aversion.
Gross pay, net pay, and scarcity.
Financial compensation, personal satisfaction, work-life balance, financial values, and family.
Career choices involve just financial compensation
Non-income factors are important when selecting a job
Non-income factors include:
Job satisfaction, personal independence, gross pay, net pay, and potential.
Job satisfaction, personal independence, risk-taking, scarcity, and loss of aversion.
Job satisfaction, personal independence, risk tolerance, family/lifestyle impact, and location preferences.
Job satisfaction, personal independence, risk tolerance, credit cards, and debit cards.
Independence: Freedom in how, when, and where you work
Characteristics of independent work:
Flexible scheduling
Self-directed projects
Autonomy in decision-making
All of the above
Career choices DO NOT directly impact personal life
Name all the different kinds of work schedule variations?
Traditional 9-5 jobs
Flexible hours
Remote work options
Jobs requiring travel or irregular hours
Most common characteristics of independence: freelancing, entrepreneurship, and consulting
