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Published byHailie Jolles Modified over 8 years ago
Earning Money 10.01
What is income and what are 3 possible sources? Income is money that you have available to you to spend 3 sources: babysitting, part-time job, allowance
What is the difference between gross and net income? GROSS: before taxes NET: After taxes Employers- person or business who you work for Employee- the worker-person who works for a business a business
What is the difference between getting paid salaried vs hourly? Salaried: same amount of money regardless of hours worked Hourly: paid by hour- 7.00/hr x hrs worked
Spending Money Budget: A plan for spending and saving money Consumer: anyone who purchases and uses products
What are expenses? Name 2 kinds of expenses? Items that you spend money on Fixed: Car payment, rent Flexible: Phone bill, credit card bill, electric bill
Why would I need a checking account? A checking account helps you to manage your money and pay bills
What is a debit card? Looks like a credit card; when purchases are made with this card money comes directly out of your checking account. (instead of writing a check, a debit card may be used.) With a debit card, you can go to the Automatic Teller Machine (ATM) and directly withdraw money form you checking/saving account.
Why would I need a credit card? Credit cards can be helpful in establishing your credit so that you can finance a home or a car one day. ** Dangers –High interest rates, monthly fees, etc. It is best to charge no more than one you can afford to pay off that same month.
What are loans? Why would I need loan? Loans are when a bank lets you borrow money that you pay back with interest. **Most loans are paid off monthly- A regular amount paid each month toward the loan. **CREDITORS LEND MONEY-banks, credit card companies, etc. **Finance fees- Money charged for borrowing money.
SAVING MONEY When should you start saving money? As soon as you start earning it!!!
What is a savings account, and what does it offer a depositor? Allows limited access to your money and gains interest from the bank the longer it stays there. ** When choosing a bank consider fees that the bank charges (monthly service fees)
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