Cash - a.k.a. green back
Check - written as a promise to pay money from your bank account.
Money order - a printed order for payment of a specified sum, issued by a bank or post office. (These have a high rate of counterfeits.)
Debit/ATM card - need a pin number to withdraw money from your...
WISE Exam Study Guide 2024
Cash - a.k.a. green back
Check - written as a promise to pay money from your bank account.
Money order - a printed order for payment of a specified sum, issued by a bank or
post office. (These have a high rate of counterfeits.)
Debit/ATM card - need a pin number to withdraw money from your bank account
Credit card - borrowing money from a company and charged interest on the unpaid
balance
Gift card - bought to spend at a certain store, may charge a fee after 12 months
Pay card - a prepaid card that an employer can use to pay their employees as an
alternative to direct deposit or paper checks. Employees can use pay cards like a
debit card or they can withdraw their wages from it. Pay card providers charge fees
for ATM withdrawals, statements, and inactivity.
Why does U.S. currency have value? - It is no longer backed by gold, so it is called
"fiat" money. People believe in the strength of our government and economy, so
they trust in the value of the money.
Currency Faces: $1 - George Washington
Currency Faces: $5 - Abraham Lincoln
,Currency Faces: $10 - Alexander Hamilton
Currency Faces: $20 - Andrew Jackson (Harriet Tubman in 2020)
Currency Faces: $50 - Ulysses S. Grant
Currency Faces: $100 - Benjamin Franklin.
Liquidity - the degree to which an asset "flows" to purchase things. Cash is the
most liquid asset, while real estate, fine art, and collectibles are illiquid (not
liquid).
Earned income - is from employment wages and salaries.
* The more knowledge, skills and experience you have, the more likely you are to
earn more income.
Unearned income - is from all other sources, like investments, interest on savings,
gifts, lottery, inheritance, etc.
Windfall Income - any type of additional income over expenses that is completely
unexpected.
Benefits - Fringe benefits commonly include health insurance, life insurance,
educational assistance, childcare reimbursement, employee stock options, use of a
company-owned vehicle and others.
Barter - exchange goods without involving money
, Gross Pay - the total amount you earn before any deductions are subtracted
(worked 3 hrs for $10/hour = $30)
Net Pay - amount of a paycheck after the deductions (taxes and FICA) are taken
out, a.k.a. Take home pay.
Taxes - are collected by the government to fund services like military, education,
roads, and bridges; all citizens benefit from these services.
Sales Tax - is levied on goods and services you purchase. This goes to the state
government.
Property Tax - is levied on homes and cars. This money goes to local government.
Income Tax - is assessed on your earnings (wages and interest). This goes to
federal and state governments.
IRS - Internal Revenue Service - collects taxes for the federal government.
In the United States, income taxes are - graduated income taxes, or progressive
income tax, meaning the more you earn, the larger percentage you pay.
Capital Gains Tax - is paid on the sale of assets (like a home or stocks).
Social Security (Definition) - is a federal insurance program for retired people and
those who are unemployed or disabled.
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