Personal Finance and Taxes

• A person who wins $25,000 on a game show and a trip to Costa Rica worth $5,700 has a tax obligation from the winnings.

Computing Tax Refunds

• If an employer withholds $4,245 for federal taxes and the tax liability is $3,211, the tax refund will be $1,034 ($4,245 - $3,211).

Calculating Capital Gains

• Cecelia bought stock for $3,400 and sold it for $4,100; the capital gain is $700 ($4,100 - $3,400).

Determining Gross Income

• Colt's gross income, with a $32,000 salary, $1,200 in dividend income, a $400 capital loss, and a $650 capital gain, totals $33,450 ($32,000 + $1,200 + $650 - $400).

Calculating FICA Tax

• With a calculated FICA rate of 7.65%, Ryan's FICA tax is $12.24 (0.0765 * $160).

Multiple Choice Questions on Personal Finance and Taxes

• Net pay is also known as take-home pay.
• Taxes are the major source of revenue for the government.
• Payroll tax is money deducted from a person's salary, sent to the government by the employer.
• Adjusted gross income decreases when taking deductions for real estate taxes, charitable contributions, and mortgage interest.
• Reducing tax liability is possible by adjusting financial planning in most cases.
• Contributions to Social Security and Medicare at age 20 pay for today's older people's benefits.

Identifying Job Application Components

• A vacation request form is not part of the job application process.

Career Path Considerations

• Job availability and compensation are primary considerations when choosing a career path.

Ease of Finding Employment

• A job market with low demand and fewer applicants makes it easier to secure a job.

Graduate Degree Requirements

• A Doctor is most likely to require a graduate degree

Career source for experience

• Internships are source that involve getting practical experience
• Personal hobbies are not required for a job application

True or False Questions

• Enjoy is the first step in determining a career path.
• A part time job can help in eliminating certain career options.
• A job application includes a resume and a cover letter.
• Internships are temporary positions.
• Accreditation recognizes schools meeting certain standards.
• Apprenticeships involve on-the-job training.
• Research is best source of career information for all professions.
• Specialized knowledge from graduate degrees enhances job prospects.
• Job availability is a determinant of suitable career.
• A resume shows the snapshot of your qualification.

Factors to Consider When Choosing a job Opportunity

• Taking a personality test is the first step in determining a career path.
• Popularity of a profession on social media is not a valid source of information for a job.
• Education and skill requirements should always be considered when choosing a career path.
• The term "compensation" refers to the pay one receives for their work.
• www.careers.org is a website that provides information about various careers.

Benefits of Guest Speakers and other Examples

• Field trips expose you to various career options.
• Working part-time in a retail store can provide the job experience for a future career path.
• An internship is temporary, and provides short-term job for career exposure and training.
• An apprenticeship is on-the-job training while you work.
• Accreditation in education requires certain school standards.
• A license to practice law is an example of a certification.
• With graduated degrees you acquire specialized knowledge for higher-level positions.

Determining Net Worth Computation

• Net worth is determined by subtracting liabilities from assets
• Cash Outflow refers to Money paid out or spent
• Long term goals can take more than five years to accomplish one set for a period.
• Short term goal is accomplished within the next year
• Intermediate aims to meet within one to five years

Money and Finances

• Cash Inflow refers to various sources of money you receive.
• Expenses relate to anything you spend money on.
• Expenses that stay the same from period to period are fixed expenses.
• Variable expenses are those that may change from one period to the next.

Other

• One of the steps in financial decision making, states that after you develop multiple ways to achieve a goal, you need to decide which option is most realistic and works for you, for periodic evaluation.
• A plan needs to monitor progress b/c things can fall off track or falter.

Multiple Choice Questions

• The best description of cash inflow is money received from different sources, such as salary and interest earned on bank accounts.
• A person's cash outflow includes payments by a person to a retirement account.
• The correct order for making financial decisions is to set specific goals, put goals in writing, have a plan of action, and rethink goals if necessary.

Calculations

• Annual Income for Part-Time Job is at $4,680.00
• Total Liabilities for Car and Credit Card is at $1,720.00
• Change in Net Worth After Car Purchase is if you did not change it
• Savings from 25% of Weekly Income comes to $650 a year
• The Value of Total Assets is $4,750
• Emily's Net Worth totals $4,500
• Jamal's Total Annual Income Problem is determined at $8,320

Multi choice answers

• Financial plan is created like a blueprint for building a house
• buying a new car with a 10% down payment from savings and a 90% loan increases net worth
• Bankruptcy is not included in a financial plan
• Uses cash to pay off credit card debt is a way to increase liquidity
• using credit to make purchases when the buyer knows she can quickly pay the amount owed, is good credit management
• Kedra's Financing Amount Problem is with final price to finance at $3,280
• $857.13 is Michael would would save
• financial goals is the definition of personal financial planning
• $27.54 is how much Ryan's employer withhold
• Mary best would save if gasoline is $351.56
• The correct answer is D for amount is is $639
• $48 is the cost of not going to the games