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Questions and Answers
What is the next best choice you could have made, but did not make?
What is the next best choice you could have made, but did not make?
Opportunity Cost
What are some opportunity costs for the Robinsons?
What are some opportunity costs for the Robinsons?
Having less time to relax, less time to go out to dinner, and less money to spend.
What are the physical, intellectual, and creative talents of people called?
What are the physical, intellectual, and creative talents of people called?
Human resources
What includes gifts of nature like water, forests, and natural gas?
What includes gifts of nature like water, forests, and natural gas?
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What are goods used to produce other goods and services, including tools and factories?
What are goods used to produce other goods and services, including tools and factories?
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Items producing something else are referred to as what?
Items producing something else are referred to as what?
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What is a medium exchange which allows you to get goods and services?
What is a medium exchange which allows you to get goods and services?
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Why should you stay in school and earn your high school diploma instead of dropping out?
Why should you stay in school and earn your high school diploma instead of dropping out?
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What is the cost of dropping out of school?
What is the cost of dropping out of school?
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Why should you save money?
Why should you save money?
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What is important because it gives a step-by-step process in what you like?
What is important because it gives a step-by-step process in what you like?
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What does the job application process include?
What does the job application process include?
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What are the characteristics of entrepreneurs?
What are the characteristics of entrepreneurs?
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What are important elements for working for someone else?
What are important elements for working for someone else?
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What are important elements for working for yourself?
What are important elements for working for yourself?
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What are three mandatory deductions from a paycheck?
What are three mandatory deductions from a paycheck?
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What is the set of intangible assets individuals bring to their work?
What is the set of intangible assets individuals bring to their work?
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What is money a person receives in exchange for work or use of property?
What is money a person receives in exchange for work or use of property?
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Extra money given for good service is called what?
Extra money given for good service is called what?
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What are examples of direct costs?
What are examples of direct costs?
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What is income that an individual could otherwise have earned during time spent in school?
What is income that an individual could otherwise have earned during time spent in school?
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What is money earned by an employee in one year called?
What is money earned by an employee in one year called?
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Earning a percentage of total sales is called what?
Earning a percentage of total sales is called what?
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Which level of formal education results in the highest income?
Which level of formal education results in the highest income?
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What is a professional degree?
What is a professional degree?
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What tax helps pay for services provided by the federal government?
What tax helps pay for services provided by the federal government?
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What tax helps pay for services provided by state government?
What tax helps pay for services provided by state government?
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What tax helps pay for services provided by local government?
What tax helps pay for services provided by local government?
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What tax provides for old-age, survivors, and disability insurance?
What tax provides for old-age, survivors, and disability insurance?
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What tax provides for hospital insurance for the elderly?
What tax provides for hospital insurance for the elderly?
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How many pay periods are in a bi-weekly pay schedule?
How many pay periods are in a bi-weekly pay schedule?
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How many pay periods are in a weekly pay schedule?
How many pay periods are in a weekly pay schedule?
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How many pay periods are in a monthly pay schedule?
How many pay periods are in a monthly pay schedule?
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How many pay periods are in a semi-monthly pay schedule?
How many pay periods are in a semi-monthly pay schedule?
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How many pay periods are in a semiannually pay schedule?
How many pay periods are in a semiannually pay schedule?
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How many pay periods are in a bimonthly pay schedule?
How many pay periods are in a bimonthly pay schedule?
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What is the total amount of money a worker earns called?
What is the total amount of money a worker earns called?
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What is the amount left after all deductions are taken out of gross pay called?
What is the amount left after all deductions are taken out of gross pay called?
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What pays a beneficiary in the event that an employee dies?
What pays a beneficiary in the event that an employee dies?
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Study Notes
Financial Literacy Concepts
- Opportunity Cost: The next best alternative not chosen in decision-making.
- Human Resources: Refers to the physical, intellectual, and creative talents of individuals.
- Natural Resources: Resources gifted by nature such as water, forests, natural gas, oil, and climate conditions.
- Capital Resources: Goods utilized to produce other goods and services including tools, factories, and office buildings.
- Capital: Not just money, but items or assets that produce something else.
Importance of Education
- Reasons to Complete High School: Higher potential income, increased job opportunities, access to degrees, and pride for family.
- Consequences of Dropping Out: Lack of education leading to lower income, fewer job prospects, and inability to attend college.
Financial Management
- Saving Money: Critical to avoid debt and maintain financial stability.
- Decision-Making: Important process providing a structured method to evaluate preferences and choices.
Job Application Process
- Steps: Involves looking for job openings, writing application letters and resumes, completing applications, interviewing, and sending thank-you letters.
Entrepreneur Characteristics
- Traits of successful entrepreneurs include owning their business, being hardworking, risk-taking, independent, and confident.
Employment Elements
- Working for Others: Success is reliant on team efforts, salaries are limited within predetermined ranges, and responsibilities are defined by an employee handbook.
- Working for Yourself: Benefits include setting your own hours, rules, and pay.
Payroll Deductions
- Mandatory Deductions: State income tax, federal income tax, and social security tax are required from paychecks.
Income Types
- Human Capital: Intangible assets individuals bring to work, such as knowledge, skills, talent, and health.
- Income: Money received in exchange for work or property usage.
- Tips: Additional money given for good service.
- Direct Costs: Expenses like tuition and books incurred by students.
- Indirect Costs: Potential income lost while attending school.
Earnings Terminology
- Annual Income: Total money earned by an employee in a year.
- Commission: Earnings based on a percentage of total sales.
Educational Impact on Income
- Professional Degree: Level of education that typically results in the highest income, examples include lawyers or medical doctors.
Tax Types
- Federal Income Tax: Funds services provided by the federal government like defense and human services.
- State Income Tax: Supports state services like roads and public safety.
- Local Income Tax: Funds local government services like schools and emergency services.
- FICA Taxes: Include Social Security tax for old-age benefits and Medicare tax for hospital insurance for the elderly.
Pay Frequency
- Bi-weekly: 26 pay periods per year.
- Weekly: 52 pay periods per year.
- Monthly: 12 pay periods per year.
- Semi-monthly: 24 pay periods per year.
- Semiannually: 2 pay periods per year.
- Bimonthly: 6 pay periods per year.
Payroll Concepts
- Gross Pay: Total earnings before deductions.
- Net Pay: Amount remaining after all deductions have been applied.
- Life Insurance: Benefit payable to a designated beneficiary in the event of an employee's death.
Studying That Suits You
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Description
Test your knowledge on financial literacy concepts with these flashcards. Understand critical terms such as opportunity cost and human resources. Perfect for students preparing for exams in financial education.
