SPF money management

Budget

A plan that outlines expected income and expenses over a specific period

spending needs

things that are essential for basic living and health

spending wants

things that are not a neccessity but are desired for enjoyment or comfort.

spending habits

the patterns and behaviors of how individuals manage their money and make purchasing decisions.

impulse buying

the unplanned purchase of goods or services, often driven by emotions or immediate desires.

gross income

The total income earned by an individual or household before any deductions, such as taxes or expenses.

net income

The amount of money an individual or household takes home after all deductions, including taxes and expenses, have been subtracted from gross income.

deductions

Amounts subtracted from gross income for taxes, benefits, and other expenses.

withholdings

amount taken from paychecks to cover estimated taxes based on W-4.

W-4

A form used by employees to indicate their tax situation to their employer, which determines the amount of federal income tax withheld from their paycheck: filled out for every new job and includes personal/family information

social security

A federal program that provides retirement, disability, and survivor benefits funded by payroll taxes on earnings.

medicare

A federal health insurance program for individuals aged 65 and older, as well as for some younger people with disabilities, funded by payroll taxes.

income tax

A tax imposed by the government on individuals' earnings, which funds public services and is typically withheld from paychecks.

flat tax

A tax system that applies a single fixed rate to all taxpayers, regardless of income level, simplifying the taxation process.

progressive tax

A tax system where the tax rate increases as the taxable amount increases, placing a higher burden on those with higher incomes.

W-2

A tax form used in the United States to report an employee's annual wages and the amount of taxes withheld from their paycheck: filled out for every job in jan or feb

1040

A tax form used by U.S. taxpayers to report their annual income and calculate their tax liability: due by April 15 and allows for tax owed or refunded

discretionary income

The portion of an individual's income that is available for spending, investing, or saving after all necessary expenses and taxes have been paid.

minimum wage

The lowest legal hourly pay rate that employers must pay their employees, set by federal or state law.

livable wage

A wage that is sufficient to provide a decent standard of living for a worker and their family, taking into account the cost of living in a specific area.

variable expense

an regular expense that price varies based on use per month

fixed expense

an expense that remains constant regardless of usage or consumption, such as rent or insurance.

periodic expense

an expense that is not consistently purchased on a month to month basis

1099

a tax form used to report income received from non-employment sources, such as freelance work or contract services.

1-9

a form that is filled out with every new job that proves eligibility to workin the U.S

you must file an income tax return if:

earned more than 14600, received unearned income of 1300, or self-employed income of 400