Personal Finance Unit 1

Long Term Goals are more than…

5 years

Short Term Goals are less than…

2 years

Intermediate goals are in between…

2 to 5 years

What does the S in SMART goals in stand for?

Specific

What does the M in SMART goals in stand for?

Measurable

What does the A in SMART goals in stand for?

Attainable

What does the R in SMART goals in stand for?

Realistic

What does the T in SMART goals in stand for?

Time limited

Step #1 for the decision making process

Identify the problem or goal

Step #2 for the decision making process

Establish choices

Step #3 for the decision making process

Weigh pros and cons

Step #4 for the decision making process

Make a decision

Step #5 for the decision making process

Evaluate results

What is opportunity cost?

What a person gives up when a decision is made; also called trade off

What is gross pay/income?

The amount you get paid before taxes

What is net pay?

The amount you get paid after taxes

What is a withholding?

The amount of Federal income tax withheld from your paycheck

What is benefits?

Perks beyond what employees earn in basic wages

What is a W-4 form?

A form that tells employers how much taxes to withhold

What is W-2 form?

A form that reports your income

What is 1099 form?

Reports income that taxes haven’t been withheld from a contract

What is a 1040 form?

A tax filing form

What is a progressive tax table?

It is based on your income

When is the tax filing deadline?

April 15th

What is a dependent?

Relies on someone else for financial support

What is a deduction?

Something that lowers taxable income