| A | B |
|---|
| Gross Income | Amount of money earned before payroll taxes |
| Deductions | Amount withheld from your paycheck |
| Mandatory & Optional | Two types of deductions |
| Net Income | Amount of take home pay (Gross pay - Mandatory and Optional Deductions) |
| Income Deductions | State and federal taxes |
| Payroll Deductions | Medicare and Social Security |
| True about both Medicare and Social Security | Employer must match what the employee contributes |
| W-4 | Form filled out when accepting a job or after any major life change like getting married |
| Allowances | Number of dependents that may be claimed on a W-4 |
| Dependents | Qualifying child or adult relative |
| Optional Deductions | Retirement account, medical insurance, and flex-spending accounts |
| Mandatory Deductions | Income and Payroll taxes |
| Social Security | Income for: Retirees, People with profound disability Children who have lost a parent, A person with children who has experienced the death of a spouse |
| Medicare | Helps pay for health care for individuals 65 and older |
| Inflation | A general increase in prices and fall in the purchasing value of money |
| Purchasing Power | The quantity of goods and services that can be bought with a monetary unit |
| Bubbles | Cycle that is characterized by the rapid escalation of market value, particularly in the price of assets |
| Consumer Price Index | A measure of the average change in prices over time in a fixed market basket of goods and services, by far the most used measure of inflation |
| Real | A price from the past has been adjusted for inflation |
| Nominal | A price from the past has not been adjusted for inflation |
| Demand Pull Inflation | The upward pressure on prices that follows a shortage in supply, a condition that economists describe as "too many dollars chasing too few goods" |
| Cost Push Inflation | overall prices rise due to increases in production costs such as wages and raw materials |
| Printing Money | Increasing the supply of money, most controversially through an asset-purchase program described as quantitative easing |
| Reasons for Inflation | Demand Pull, Cost Push, Printing Money |
| These budgeting areas make-up over 60% of a households budget | Housing, Transportation & Food |
| W-2 | Reflects your income earned and taxes withheld from the prior year to be reported on your income tax returns |
| Student Aid Index (SAI) | Measurement used by the government to tell how much your family may be able to financially contribute to paying for school. |
| Free Application for federal Student Aid (FAFSA) | An application for free money to pay for school in the form of grants from the government. |
