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
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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
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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