Taxes
Mandatory payments you make to state and local governments
When is a budget considered to be balanced?
When the amount you spend is equal or less than the amount you earn.
Balanced budget example
A budget where the amount you spend is equal or less than the amount you earn.
Income
money you earn, usually from working at a job.
Typically, how do people earn income?
Most people earn income by working at a job.
What is an example of a NEED?
Warm winter coat; place to live; critical medicine
What is an example of a WANT?
A new pair of headphones; Designer shoes; Your favorite candy
Variable Expense
An expense that is different from month to month.
Fixed Expense
An expense that typically does not change month to month.
Take Home Pay
The amount left over from your monthly paycheck after deductions.
Federal Taxes
Payments you make to the US federal government.
Medicare
Federal health insurance for people over age 65.
What happens if you spend money on things you want before things you need?
You limit your ability to save for for high-priced items, like higher education.
What is one way to begin saving startup capital?
Set aside a portion of your income each month.
Entrepreneur
someone who creates, owns and potentially runs a business
What are the four parts of a SWOT Analysis?
Strengths, Weaknesses, Opportunities, Threats
Social Security
a tax you must pay
In a balanced budget, the amount you ______ is ______ the amount you earn.
Spend; equal to
An example of a variable expense is groceries (T/F)
TRUE
An example of a fix expense is movie tickets (T/F)
FALSE
Income is money you earn, usually from working at a job. (T/F)
TRUE
Federal taxes are payments you make the the US federal government. (T/F)
TRUE
When creating a personal budget, it is important to consider things you _____, _______ things you ______.
need; before; want
The amount you spend on variable expenses does NOT change from month to month. (T/F)
FALSE
Startup capital is the money you invest in the form of supplies, marketing, legal services, and other investments to get your business up and running. (T/F)
TRUE
Startup capital is the money spend in order to create a balanced budget for your personal finances. (T/F)
FALSE
Take home pay is amount left over from your monthly paycheck after deductions. (T/F)
TRUE
Business plans should never be revised. (T/F)
FALSE
Aggressiveness and intensity is NOT necessarily a characteristic of a successful entrepreneurs. (T/F)
TRUE
You have control over where and when you work when starting your own business. (T/F)
TRUE
Entrepreneurs create the businesses that produce products and services that meet the wants and needs of consumers. (T/F)
TRUE
The main purpose of developing a business pitch is to briefly share the most important information about your business to people in an engaging way. (T/F)
TRUE
You need to consider who your potential customers are before deciding on marketing strategies. (T/F)
TRUE