1. Budget: a plan for managing income and expenses Expenses: Money that is required to be paid once a month Fixed Expenses: expenses which usually do not vary in amount and must be paid on a regular basis (mortgage, car payments, etc.) Variable Expenses: expenses which vary from week to week or month to month (clothing, food, etc.) Life Vocabulary

2. Lease Agreement: Legal binding contract that is signed that lists the terms and fees associated with renting a house or an apartment. Security Deposit: Amount paid to landlord that pays for any damages to property that might occur during rental period. Amount charged is usually equal to one months rent Sub Letting: Renting out apartment to another responsible party other then person or persons on lease

4. W- 4 Withholding Income Tax From Your Paycheck The amount of income tax your employer withholds from your regular pay depends on two things: The amount you earn The information you give your employer on Form W-4 (and DE 4, if desired). Form W-4 includes three types of information that your employer will use to figure your withholding. Whether to withhold at the single rate or married rate. How many withholding allowances you claim (each allowance reduces the amount withheld). Whether you want an additional amount withheld. If your income is low enough that you will not have to pay income tax for the year, you may be exempt from withholding. See ‘Resources’ below for more information. NEW Job When you start a new job, you must fill out Form W-4 (and DE 4, if desired) and give it to your employer. Your employer should have the forms. If you later need to change the information you gave, you must fill out a new form.

5. Benefits are payments (other than a paycheck) or other benefits (health insurance) given to employees by employers. Benefits may be required by law, offered by an employer, or requested by employees as a group through collective bargaining. The following are examples of employee benefits. Paid holidays *Paid vacations Paid personal leave *Paid funeral leave Paid military leave *Paid jury-duty leave Paid and unpaid family leave *Paid sick leave Short term disability insurance * Medical care Long-term disability insurance *Dental care Defined benefit pension plans *Life insurance Defined contribution plans * Vision care Flexible benefit plans *Travel pay Reimbursement accounts *Child care Wellness programs *Educational assistance Ride-share programs

6. Gross Income: Your gross income is your total pay before anything is taken out. It includes any overtime, paid vocation time, or paid sick time you have earned. Net Income: Your net income is the amount you are paid after deductions. This is your take-home pay. Hourly Pay Rate: Your pay rate includes the amount you are paid. It is usually listed here by the hour. Retirement Deduction: Money put aside for later in life

7. Deductions: All the additional money taken out of your paycheck will be listed as deductions. These include the benefits and deductions described in Teamwork 2, such as federal tax, FICA, health insurance, retirement, and other deductions. Weekly Gross Pay: Paid Weekly Biweekly Gross Pay: Paid every two weeks Monthly Gross Pay: Paid once a month

8. Federal Income Tax- Tax withheld from a paycheck that goes to the federal government. State Income Taxes – Tax withheld from a paycheck That goes to the state government

9. Check: handwritten or computer generated order specifying the amount of money to be paid and the name of the person or company who should receive the funds Deposit/ Credit: Money you put into your account Debit: withdrawal from your account Credit: Money added to you account Debit Card: a card that allows user to withdraw money from a bank account to obtain cash or make purchase NOT A CREDIT CARD

10. Cancelled Check: When you banking institution withdrawals payment from account for the check Checkbook Register: A journal in which you log both deposits, withdrawals and checks into. Pay to Order of: (Payer) The person that you are writing the check Payee: Person writing the check Overdraft / Overdrawn: you have a negative balance in your account. Bounced Check: Writing a check when you don’t have enough money in your account for that check

11. Overdraft Penalty: Amount bank or store charges you when the account has a negative balance. Joint Checking Account: Account that is owned by more then one person. Personal Identification Number/PIN: four digit code connected to the debit card that verifies your identity. Electronic Funds Transfer: the movement of funds using a computer, telephone or other electronic devices. Direct Deposit: When your employee directly deposits your paycheck into your bank account via computer.

12. Savings Account: process of putting money aside for the future Statement Balance/Reconcile: comparing the amount in account to what is written in checkbook register.