Warm-up & Review (Located on your notes sheet) Without looking at your notes from last time, list 8 different types of payments (other than cash or trade) that exist in our society. What does it mean that our society is increasingly “cashless?”
8 forms of payment (not cash or trade) Gift Card Debit Card Prepaid-Debit Card Personal Checks Cashier Checks Money Order Credit Card Electronic Fund Transfer (EFT)
“Cashless” Society These days, we pay for things with something other than cash/coin Why? Often safer and easier than carrying lots of cash
How can you (legally) get income? Realistic Ideas?
How can you (legally) get income? 1. Employment
How can you (legally) get income? 2. Investments—interest/dividends
How can you (legally) get income? 3. Rental Income
How can you (legally) get income? 4. Sell goods/services
How can you (legally) get income? 5. “Windfall” Income Gambling/Lottery Inheritance—money given when someone dies Gifts
What influences how much money you make? Knowledge, skills, education
What influences how much money you make? Job opportunities
What influences how much money you make? Employment benefits Might not be part of your income, but one of the most important things connected to a job!
What influences how much money you make? Inflation—when prices go up (inflate), the value of your money goes down Too much money in circulation Purchasing Power of each dollar drops
What influences how much money you make? Deflation—when prices go down (deflate), the value of your money goes up Too little money in circulation Purchasing Power of each dollar rises
What influences how much money you make? Taxes—money you pay to fund government
Different types of taxes Payroll tax—taken out of your paycheck
Different types of taxes Excise Tax—tax on specific good E.g. Gas Tax, Cigarette Tax
Different types of taxes Income Tax—tax on your income The more money you make, the more you owe
Impact on Income When taxes go up, your income left-over for your own spending goes down
Who collects taxes in our country? The Government—the Internal Revenue Service (IRS) collects federal (national) taxes
When do you file federal and state income taxes? Due to IRS by April 15th each year (almost same due date for state taxes)
Graduated Income Tax In our country, the more money you make the more you pay in taxes