| A | B |
|---|
| budget | a plan for managing your money during a given period of time |
| income | makes up the first part of the equation; it is any money you receive. |
| Federal income tax | a fee collected by the federal government to support this programs |
| State Income Tax | collected by every employer on behalf of its employees |
| Medicare Tax | provides medical insurance to elderly and disabled veterans |
| Gross Income | the total amount of income from your wages or before any payroll deductions |
| Net Income | Take home pay |
| Fixed Expenses | cost the same amount every time |
| Variable Expenses | fluctuate in amount; you can usually have more control over how much they'll be |
| Periodic Expenses | expenses you don't pay every month, and can be either fixed variable |
| PYF | when you receive money, you should immediately put a certain amount into an account that you set aside to use later to meet a long-term financial goal |
| Cash flow | the money you have coming in, as well as the money you have going out |
