Standard 1 VOCABULARY

 Career – a purposeful course of action or purpose in life that generally provides income  Earned Income –money received for work preferred. May include salary, wages, tips, professional fees, commissions, etc.  Human Capital Investment – investment of time, effort, and resources in education and training – to increase one’s own knowledge, skills, health, or to develop the assets in others  Income – Money earned from investments and employment  Income – Payments earned by households for selling or renting their productive resources, may include salaries, wages, interest and dividends

 Job – apiece of work usually done on order and at an agreed-upon rate; also a paid position of regular employment  Labor –the quantity and quality of human effort available to produce goods and services  FICA – Federal Insurance Contributions Act  Gross pay – Wages or salary before deductions for taxes and other purposes  Social Security – A federal government program providing retirement, survivor and disability benefits, funded by a tax on income, which appears on worker’s pay stubs as a deduction labeled FICA  Net pay or Take Home Pay - Gross wage or salary, plus bonuses, minus deductions such for taxes, health care premiums, and retirement savings.

 Withholding – Employer deductions from employees’ earnings to pay employees’ taxes  Goal – A statement about what a person wants to be, do, or have accomplished by taking certain steps; provides direction to a plan of action  Goal Setting – The process used to determine what an individual wants to be, do, or have, i.e., what a person wants to accomplish  Budget – A plan for managing money, dividing up expected income and expenses among spending and saving options based on personal goals during a given time period  Financial Goal – Desired results from one’s effort to achieve personal economic satisfaction

 Fixed Income – Income that stays the same from week to week  Variable Income – Income that varies from week to week  Expenses – The costs of goods and services, including those that are fixed (such as rent and auto loan payments) and those that are variable (such as food, clothing and entertainment)  Fixed Expenses – Expenditures that are the same from week to week or month to month, such as mortgage or rent payments and car payments  Variable Expenses – Expenditures that change from week to week or month to month – for food, clothing, recreation and entertainment, for example