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15 Cards in this Set

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What is the difference between receiving salary and hourly wage?

hourly wages are paid by the hour


salary is income for the year.

what is the difference between gross pay and net pay?

gross pay is the total amount of money that you can earn and Net pay is the amount of money that you receive.

what are four common types of paycheck deductions?

federal income


state & local taxes


social security taxes


medicare

when and why would you be asked to fill out a form W-4?

to ensure that your employer withholds the correct amount from your pay.

what is the purpose of tax return?

To report your total earning for the preceding year and to determine exactly how much tax you should have paid.

describe how to choose a checking account.

You can use checks instead of cash to buy items and pay bills.

How does a credit card work?

A card that deducts the cost of purchases from the users account at the time of the purchase.

what must you do to reconcile your checking account?

bringing your bank statement and your own records of transaction.

How is a money market account different from a regular savings account?

The bank uses it to make loans and investments and pays you interest in return.



why is it important to have a budget?

A budget will help you live within your means and meet your financial goals

what is the main reason to have insurance?

you can experience health problems, accidents, natural disasters, and crime.

what is a deductible?

a set amount the policy holder must pay for each loss before the insurance pays out.

What are three basic types of insurance?

health, auto, and home insurance

What is the difference between bonds and stocks?

government corporations issue bonds.


stocks are when corporations raise money by selling stock

how is a 401K plan similar to an IRA?

401K plan is a specific type of retirement plan, and an IRA Plan enables workers and spouses to set aside money for retirement.