1. Exploring the Money Matters of the Federal Government$ $
Money Matters $
Exploring the Money Matters of the Federal Government

2. Where Does Federal Money Come From?$

3. Where Does Federal Money Come From?$
When the government needs more money, it can’t simply start printing it.
It has to come from somewhere!

4. Where Does Federal Money Come From?$
TAXES!
You might have heard people complain about paying taxes from time to time, but without taxes our government couldn’t run some very important programs that help people!

5. Where Federal Money Comes From$
The money that the government runs on is raised through taxes.
That’s right!
The money raised by the government through taxes is called revenue!
This money is called REVENUE!

6. Where Federal Money Comes From$
There are several types of taxes…
Social Security
Income Tax
This tax is taken to provide retired people with income they need. In 2010 it was 6.2% of your total income!
This tax is based on a percentage of what you make. The more you make, the higher percentage you pay!
Corporate Income Tax
Excise Tax
These are taxes paid on certain goods like alcohol, cigarettes, jewelry, and gas.
Just like the personal income tax, corporations must pay income taxes!
Other Taxes
This includes estate taxes (when someone dies) and taxes on goods brought from other countries (tariffs).

7. Where Federal Money Comes From$
TOTAL: $2,381,000,000,000

8. Quick Review! $ Revenue is… A. New “reve”
B. Money that the government raises through taxes
C. Money that the government spends on taxes
D. Money that the government spends over their budget

9. Where Federal Money Goes$
With all that money (all $2,381,000,000,000 of it) and all the projects in the country to think about, there is only one thing that can help keep it all straight…
The
Federal Budget

10. Where Federal Money Goes$
What’s a BUDGET?

11. Where Federal Money Goes$
Budget: A plan for how money is earned and spent

12. Where Federal Money Goes$
Federal Budget: A plan for how the government brings in and spends revenue

13. Where Federal Money Goes$
A budget is…
A. a type of plan for printing money.
I see! A budget is a plan for receiving and spending money.
B. something the government uses to measure things.
C. a plan for receiving and spending money.
D. a pet bird.

14. There are several ways the federal government spends money…
Federal Spending $
There are several ways the federal government spends money…

15. These are just broad categories!! Let’s break them down…
Federal Spending $
These are just broad categories!! Let’s break them down…

16. Defending our nation is a high priority.
FY 2010: National Defense $
Defending our nation is a high priority.
In 2010, more than $650 billion dollars went to funding military operations, personnel, supplies, and research!
Total Defense Spending:
$722,000,000,000

17. FY 2010: Social Security $
When people are retired or disabled, Social Security helps them get the financial assistance they need.
Total Social Security Spending:
$724,000,000,000

18. These programs provide necessities like housing and food.
FY 2010: Income Security $
Other types of financial assistance help people who are disabled, unemployed, or needy.
These programs provide necessities like housing and food.
Total Income Security Spending:
$629,000,000,000

19. When people retire, they often lose their health insurance.
FY 2010: Medicare $
When people retire, they often lose their health insurance.
The U.S. government has established Medicare to help them pay for health care!
Total Medicare Spending:
$462,000,000,000

20. FY 2010: Health $
Doctors’ visits, medicines, emergency care… these are necessities for everyone!
Insurance for the needy, disease research and control, and children’s health insurance all fall into this category.
Total Health Spending:
$386,000,000,000

21. There are many other categories of government spending. These include:
FY 2010: Other Spending $
There are many other categories of government spending. These include:
Education
Science
Environment
Development
Transportation
Other Government Spending:
$677,000,000,000

22. The total estimated budget for 2010 was
FY 2010 Spending $
The total estimated budget for 2010 was
$3,600,000,000,000
Trillions!
Thousands
Hundreds
Billions
Millions

23. Quick Review! $ The federal budget is…
A. The plan for managing and spending state money.
B. The plan for raising government funds.
C. The plan for figuring out who will feed the dog.
D. The plan for managing and spending federal money.

24. Two Possible Outcomes $
After all the revenue is counted and all the spending is tallied, there are two possible outcomes for the budget…

25. Deficit Surplus Two Possible Outcomes $
The government spends MORE than it raises in taxes so that it must borrow money!
The government spends LESS than it raises in taxes so that there is money left over! OR
Deficit
Surplus

26. Deficit Two Possible Outcomes $
In a deficit there is no money left over after the budget is laid out.
Trillions of Dollars
In fact the government must borrow money to complete the budget!

27. Surplus Two Possible Outcomes $
In a surplus there is money left over after the budget is laid out.
Trillions of Dollars
The government can use the money that is left over for other projects!

28. Two Possible Outcomes $
This chart shows that there has been a deficit almost every year since 1980.
Deficit: more money spent than earned
Surplus: less money spent than earned

29. Most of the revenue raised by the government comes from _________tax.
Fill in the blank: $
Most of the revenue raised by the government comes from _________tax.
income

30. Match the definition to the term:$
budget
money left over after the budget is spent
federal budget
spending more than is raised in taxes
surplus
the plan for bringing in and spending revenue
a plan for how money is earned and spent
deficit

31. Match the definition to the term:$
budget
money left over after the budget is spent
federal budget
spending more than is raised in taxes
surplus
the plan for bringing in and spending revenue
a plan for how money is earned and spent
deficit

32. Match the definition to the term:$
budget
money left over after the budget is spent
federal budget
spending more than is raised in taxes
surplus
the plan for bringing in and spending revenue
a plan for how money is earned and spent
deficit

33. Match the definition to the term:$
budget
money left over after the budget is spent
federal budget
spending more than is raised in taxes
surplus
the plan for bringing in and spending revenue
a plan for how money is earned and spent
deficit

34. budget federal budget surplus deficit Way to go! REVIEW $
a plan for how money is earned and spent
budget
federal budget
the plan for bringing in and spending revenue
Way to go!
surplus
money left over after the budget is spent
deficit
spending more than is raised in taxes

35. Choose the right answer:$
When the country spends more than it earns that is called a…
A) Surplus
B) Deficit OR

36. Choose the right answer:$
When the country spends less than the amount of money it earns it is called a…
A) Surplus
B) Deficit OR

37. Choose the right answer:$
According to the chart shown earlier, our country usually has a…
A) Surplus
B) Deficit OR

38. Our country usually spends more than it earns, so we have a deficit!
REVIEW $
That’s right!
Our country usually spends more than it earns, so we have a deficit!