Financial Terms Important Terms for Life and for Spreadsheets

How We Get Paid Hourly Rate – Fixed rate of a dollar amount for each hour – Minimum wage is: $11.00 – General $10.30 – Student Salary – A fixed regular payment usually based on an annual sum. – A first year teacher salary is $45 000/year – A police officers first year is $63 400/year – An entry level job at McDonalds is $22 800/year

How We Get Paid Commission – This is when you make a percentage of what you sell. For example: You work at the GAP and you are paid a 4% commission on your sales each month. If you sell $7028 (sales) of clothes this month you will make a commission of $ This would be added to your paycheck. (4% of $7028 is 0.04*7028 = ) – Many jobs use a combination of Hourly Rate and Commission, although some jobs work purely on commission.

How We Get Paid Piecework – Piecework is getting paid for performance. This includes some factory jobs, delivering papers or tree planting for example.

Other Important Terms Earnings: What you get paid This would be any money you make or your Pay. Gross Pay: All of the money you make (before deductions). Deductions: Money that is taken off of your pay. Deductions include income tax, pension, health and dental plans, union dues, professional fees and more. Net Pay: All of the money you take home (after deductions). Also known as take home pay. NET PAY = GROSS PAY - DEDUCTIONS

Basic Business Financial Terminology Revenue: This is all of the money coming in. Expenses: This is all of the money going out. Profit / Loss (Net Revenue): To determine the Profit or Loss use the simple equation… Revenue – Expenses = Profit/Loss If the answer is + the business has a profit If the answer is – the business has a loss