Money Management
Terms are listed in Alphabetical Order
Budget - a list of all income and expenses
Decision Making Process - Process by which you examine information to make
a decision. Steps in the process in order are: 1. Identify Goal. 2. Gather
Information. 3. Examine Alternatives. 4. Analyze the Outcomes. 5. Make
Decision. 6. Evaluate Results.
Expense - Amount that is paid out for goods or service.
Federal Income Tax - A fee for the support of federal programs. Collected from
the gross pay of emplo yees and turned in to the Internal Revenue Service. The
percent collected varies by salary and number of dependants.
FICA - Acronym for Federal Insurance Contribution Act. More commonly known
as the Social Security Tax.
Fixed Expenses - Expenses that are the same from month to month. Examples
include rent or mortgage payments.
Goals (Financial) - Item or situation to be achieved in which money is involved.
Example: I will save $50.00 over the next 60 days by taking lunch instead of
eating out.
Gross Pay - A person's salary before any deductions. It is the amount an
employee agrees to when accepting employment. Usually denoted by a per hour
rate such as $7.50 per hour or a yearly salary such as $24,000 a year.
Income - A gain or recurrent benefit usually measured in money that derives
from capital or labor.
Medicare Tax - A fee collected to fund the hospital insurance provided under the
Social Security Act.
Money Management - Also known as Financial Planning, the concept of taking
control of your spending habits to achieve set goals or objectives.
Need - An item that is considered necessary for survival. Examples include food,
water, and shelter.
Net Pay - The amount of money that is left after all deductions are taken from an
employees salary. Also known as "Take home pay".
Payroll Deductions - Amounts taken away from Gross pay. Generally there are
four common deductions: Federal Income tax, State Income tax, Social Security
Tax, and Medicare Tax. However other deductions include; retirement,
insurance, and savings bonds.
Social Security Tax - A fee to pay for the retirement and other social insurance
needs and is collected under the Federal Insurance Contribution Act (FICA)
State Income Tax - A fee collected to pay for
Values - Items, ideals, or concepts considered of importance to an individual.
Variable Expenses - Amounts paid out monthly that change from month to
month. Examples could include; electric bills, grocery bills, and medical
expenses.
Want - Items that a person would like to obtain b ut that are not needed for
survival. Examples include new clothes, new car, or cable television.