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Published byAlexis Bradley Modified over 9 years ago
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Teen Living Objective 10.01 Identify Sources of Income and Types of Spending
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Income Income = The amount of money someone earns and has available to spend
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Type of Employment Salaried Employee = earn the same amount of money per month, regardless of the hours worked (vs. Hourly Employee = paid based upon number of hours worked)
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Net/Gross Income (Gross Income = The amount of income that you start with) Net Income = The amount of income that is left after taxes
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Net/Gross Income Deductions = the amount of money subtracted from the total pay (gross income) Gross annual income = $50,000 Taxes (33%) = 16,500 Insurance = -4,200 Net Income = $29,300
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Savings Savings Accounts = Keep money safe and pays YOU interest (Interest works for you in a savings account, as you make $, but it can work against you)
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Interest Interest = a payment in addition to the original cost (i.e. a new flat screen TV costs $500. You pay a total of $575 when making payments for a year. The extra $75.00 you paid for the TV was the INTEREST that you paid the store)
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Payments Monthly Loan Payments = regular payments toward the cost of an item plus the interest charged
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Debit Cards Allow a person to pay for items without writing a check (the money comes directly out of their checking account, just as a check would)
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ATM Automatic Teller Machines = enable customers to withdrawal certain amounts of money from their checking accounts (you can access your money any time of the day or over the weekend)
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Credit Cards Lowest Annual Percentage Rate = the most economical credit card has the lowest % rate (the lower the rate, the less you have to pay the bank back for borrowing money)
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Credit Cards Grace Period = the amount of time before a finance charge is added to what is owed (you can charge a purchase on your credit card, but if you pay the total before the due date, you do not pay a finance charge/interest)
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Credit Card Terms
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