Earning an Income Review A purposeful course of action or purpose in life that generally provides income Career The more ______ a person has, the easier it will be for that person to find employment. Education Money received from work performed; may include salary, wages, tips, professional fees, commissions, etc. Earned Income FICA is also known as Social Security The health, education, experience, training, skills and values of people. Also known as human resources Human Capital When estimating income, you should be sure to include Wages, Commission, Tips, Bonuses Investment of time, effort and resources in education and training- -to increase one's own knowledge, skills, health, etc., or to develop those assets in others Human Capital Investment The _______ is the amount for which a paycheck is written. Net Pay Payments earned by households for selling or renting their productive resources. May include salaries, wages, interest and dividends Income When setting _____ goals, set short-term and medium-term goals as steps to accomplish your long- term goals Long-term A piece of work usually done on order at an agreed-upon rate. Also a paid position of regular employment Job A _______ requires education or training and a _____ does not Career/job The quantity and quality of human effort available to produce goods and services labor A _______ can help you do any of the following evaluate your spending habits avoid running out of money between paychecks increase your savings budget Anything subtracted from your gross income Deductions Legal allowances that reduce the amount of income taxes subtracted from your gross income exemptions Federal Insurance Contributions Act FICA If you sign a lease on an apartment, your rent is a Fixed expense Wages or salary before deductions for taxes and other purposes Gross income Federal government program, financed by deductions from wages, that pays for certain health care expenses for older citizens Medicare The BEST description of a _____ is a plan for saving and spending your money budget Commonly called "take home pay"; it is your income after all deductions and exemptions Net income Setting a goal to purchase a new car in four years is the example of a _____ goal. Medium-term A goal may be all of the following Short-term medium-term long-term What are some of the benefits many employers offer to employees? Health insurance retirement plan health insurance What is required to be subtracted from your gross pay? State and federal taxes What is the opportunity cost of dropping out of school? Higher income The costs of goods and services, including those that are fixed (such as rent and auto loan payments)and those that are variable (such as food, clothing, and entertainment) expenses Income that varies from week to week or month to month Variable income Legal allowances that reduce the amount of income taxes subtracted from your gross income exemptions Wages or salary before deductions for taxes and other purposes Gross income A federal government program that provides retirement, survivor's, and disability benefits, funded by a tax on income, which appears on workers' pay stubs as a deduction labeled FICA Social security A statement about what a person wants to be, do, or have, accomplished by taking certain steps; provides direction to a plan of action goal A plan for managing money, dividing up expected income and expenses among spending and saving options based on personal goals during a given time period budget The process used to determine what an individual wants to be, do, or have (i.e., what a person wants to accomplish) Goal-setting Desired results from one's efforts to achieve personal economic satisfaction Financial goal Expenditures that are the same from week to week or month to month, such as mortgage or rent payments and car payments Fixed expenses Expenditures that change from week to week or month to month-- for food, clothing, recreation and entertainment, for example Variable expenses