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What is a budget? What is the stock market?. Budget. Fixed Cost Variable Cost Budget. Fixed Cost - amounts that stay the same every month like a car payment or rent Variable Cost - amounts that change like food or entertainment or vacations - PowerPoint PPT Presentation
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What is a budget?
What is the stock market?
BUDGET
Fixed Cost Variable Cost Budget
Fixed Cost - amounts that stay the same every month like a car payment or rent
Variable Cost - amounts that change like food or entertainment or vacations
Budget - is a plan for how people will spend their money
Key Points Fixed Costs are amounts that stay the
same every month like a car payment or rent
Variable Costs are amounts that change like food or entertainment or vacations
A budget is a plan for how people will spend their money
Income is the amount of money a person makes
Pay CheckIncome Expenditures
Real Estate Agent 2000 National taxes 200
Watering Lawns 250 State taxes 50Interest from savings 50 House payment 1250
Food and restaurants 300
Travel, clothes, and entertainment 350
Savings account 200
What is the total income? What are the total expenditures? Does this budget work?
Salary.com
Find out how much you make a year and divide it by 12
Which of the following is a fixed expenditure? $300 for food and restaurants B. $350 for travel, clothes and entertainment $1,250 for a house payment $2,000 for Real Estate Which of the following is a variable expenditure?
$300 for food and restaurants C. $250 for watering lawns
$1,250 for a house payment D. $2,000 for Real Estate
Vocabulary Gross Income Net Income Taxes
Vocabulary Gross Income – Total money made Net Income – Money left after taxes Taxes – Money taken out by the
government
Taxes Taxes pay for things like schools, roads,
police and firefighters. Gross income is the total money that is
made Net income is the money left after taxes
(Think of a net catching what is left)
We will use 25% for federal taxes and 4% for state taxes.
Paycheck for Joseph
Payment for yardcare $1500.00
Federal taxes
State taxes
Check amount
Paycheck for Joseph
Payment for yardcare $1500.00
Federal taxes -$375.00
State taxes
Check amount
Paycheck for Joseph
Payment for yardcare $1500.00
Federal taxes -$375.00
State taxes -$60.00
Check amount
Paycheck for Joseph
Payment for yardcare $1500.00
Federal taxes -$375.00
State taxes-$60.00
Check amount $1065
Define net income Define gross income
Find the federal and state taxes on someone who makes $1000 (STEPS 2 and 3)
Salary.com Find a job you want Divide the total salary by 12 to get your
monthly income. Figure out your monthly gross and net
pay for your job
______ 25. Which of the following is Joseph’s gross income? $1,000 C. $200 $100 D. $700
______ 26. Which of the following is
Joseph’s net income? $1,000 C. $200 $100 D. $700