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27 Cards in this Set
- Front
- Back
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Why people invest in human capitol
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to put themselves in a position to better there lives
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opportunity cost
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giving up money now to make money in the future
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connections between human capital and jobs/income
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the more time and money you invrst in your capital pays off with a better jobs and income
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relationship between education and earnings
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higher education equals better earning for yourself
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relationship between education and unemployment
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ussually the lower the education level the more likely you are to be unemployed
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relationship between income and standard of living
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the higher your income the high standard of living you can have for yourself
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gross pay
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what you earn before taxes
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net pay
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what you earn after taxes
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social security tax
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shared by you and employer each pay 6.2 percent
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progressive tax
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average rate of tax is higher for higher income and lower for lower income
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marginal tax rate
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refer to the differeant incremental rate of taxation that are applied over differeant ranges of income
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taxable income
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is almost always lower then your gross income the government deducts a certain amount of money from your gross pay
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cost of living
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the amount of money you would need to live comfortably
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3 kinds of financial goals
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-short term goal
-medium term goal -long term goal |
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spend less then you recieve
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in order to do that you must find out where the money is going and make a budget
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how to spend less money
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- set goals
-make a budget -put money in the bank and out of site |
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required tax deductions from paycheck
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-federal
-state -social security -medicare |
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medicare taxes
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is a proportional taxe at 1.45 percent everyone pays the same
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proportional tax
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everyone is being taxed the same rate regardless of income
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regressive taxes
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-maximum cap- all income over the cap is not taxed the cap is 102,000
-the more you make the less percentage of your income goes towards social security because of the cap |
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income
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the money that you make weekly that is taxed
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reasons for the difference in income between groups of people
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-education
-expirence -employer |
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federal income taxes
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is a progressive tax paid to your government based on your income
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state taxes
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progressive tax paid toward your state government based on your income
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budgeting
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is a spending plan for managing money during a specific period of time
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poverty
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poverty is based on the income and the size of the family for example a family of 5 people with 3 childern under the age of 18 are considered in poverty if the parents make less then 23,691 combined
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optional deductions
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-medical insurance
-disability -retirement -credit union dues -union dues |
