2.1 FEDERAL INCOME TAX
FIT: (Federal Income Tax) is money withheld by
Tax Table on Pg. 790
Carlas gross pay for this week is $425.88. She
is married and claims 2 allowances- herself and
her husband. What amount will be withheld
from her pay for
3.1 AVERAGE MONTHLY EXPENDITURES
Recordkeeping is a way for you to manage
Record your expenses on a budget sheet.
Record your monthly expenditures.
Can help you find out how you spent your
money. (Examine your spending habits.)
Can help you fi
12.1 CERTIFICATES OF DEPOSIT
Certificate of Deposit (CD):
One way to invest.
Earns interest at a higher rate than a
regular savings account.
Buy CDs for a specific amount (e.g. $500)
Must leave the money for period of
time(ranging from 3 months to 30 year
11.1 HEALTH INSURANCE PREMIUMS
Protects you against overwhelming medical
Three most popular:
Offers health care coverage when the health care
provider is paid a predetermined dollar amount for
the service given.
10.1 Mortgage Loans
First make a down payment.
Generally between 10 and 40 percent of the selling
Most 1st-time homeowners put down 5%.
Programs and other fees occur when putting down
less than 20%.
Remaining portion of the selling price is fina
9.1 PURCHASING A NEW VEHICLE
Sticker Prices are required by law.
What is included in the sticker price?
Base Price: the price of the engine, chassis, and any
other piece of standard equipment for a particular
Options: the extras for convenience, sa
8.1 Single-Payment Loans
Single-Payment Loan: a loan that you repay with
one payment after a specified period of time.
A promissory note is one type of single-payment loan.
These loans are usually for a short period of time.
Generally less than a year.
7.1 Account Statements
Account statements are received once a
month for credit card or charge accounts.
Lists items you purchased for a one-month period,
finance charges and credits.
A credit card allows you to purchase goods
and services immediately.
6.1 Sales Tax
6.2 Total Purchase Price
Most states charge sales tax on goods sold.
Tax is on the selling price of an item.
Usually expressed as a percent.
Varies from state to state.
Money is used to pay for fire, police and other
Savings Accounts: earn interest on the money in the
account for banks use of your money.
Deposit: Money given to the bank to hold.
Deposit slips are much like those used for checking
Total Deposit = (Currency + Coins
1.1 Hourly Pay
When you get a fixed amount of money for
each hour you work.
Hourly rate: amount paid per hour worked.
Straight-time pay: the total amount of
money you earn for a pay period at the
Straight-Time Pay = Hourly Rate