Family+Economics+Exercise

Define the following: (1.) a. Income- the monetary payment given for goods or services, or from other sources, as rents or investments. b. Deduction- something that is or may be deducted: She took deductions for a home office and other business expenses from her taxes. c. Income tax- a tax levied on incomes, esp. an annual government tax on personal incomes. d. Payroll tax- a tax levied against the amount of wages and salaries paid workers. e. Medicare- a U.S. government program of hospitalization insurance and voluntary medical insurance for persons aged 65 and over and for certain disabled persons under 65. f. Social Security- a program of old-age, unemployment, health, disability, and survivors insurance maintained by the U.S. federal government through compulsory payments by specific employer and employee groups. g. Mortgage- a conveyance of an interest in property as security for the repayment of money borrowed. h. Property tax- a tax levied on real or personal property. i. Utility- a public service, as a telephone or electric-light system, a streetcar or railroad line, or the like. j. Insurance- the act, system, or business of insuring property, life, one's person, etc., against loss or harm arising in specified contingencies, as fire, accident, death, disablement, or the like, in consideration of a payment proportionate to the risk involved. k. Credit- a sum of money due to a person; anything valuable standing on the credit side of an account. l. 401K- a savings plan that allows employees to contribute a fixed amount of income to a retirement account and to defer taxes until withdrawal. m. Pension- a fixed amount, other than wages, paid at regular intervals to a person or to the person's surviving dependents in consideration of past services. n. Deductible- allowable as a tax deduction: Charitable contributions are deductible expenses.

(2). In the state of Wisconsin. we pay income tax to two levels of government. what are the two levels? federal government and state government.

(3). The amount of income tax goes up. The more income you make, the percentage goes up higher.
 * Income || Income Tax ||
 * 35,000.00 || 1,960 ||
 * 75,000.00 || 7,660.00 ||
 * 111,000.00 || 15,420.00 ||
 * 1,000.000 || 309,360.00 ||

(4). Using the same figures from question 3, what happens to the amount of payroll taxes poeple pay as their income rises? If you are married and have the same allowances, the more money you make you make the more payroll taxes you pay.

(5). Identify at least four factors that affect the cost of auto insurance. Your age, sex, marital status, driving record and record of prior claims form reliable rate making criteria to define your risk level. Your vehicle (its type and age) makes another important factor that has its affect on the Car Insurance rates. The area you live in also gives Insurance companies ground to judge about chances of exposure to accidents and base their Insurance rates accordingly. The way you use your car also affects Auto Insurance rates. (6). Identify at least four different types of taxes people pay. Federal Income Tax State Income Tax (7). What are some factors that affect the price of groceries? If its rare or hard to find, or if its in season. The cost of grain, the cost of meat, The cost of dairy, The amount of profit the gorcery store decides to make.

(8). __**Months- Monthly payment**__ 12- 1,625.72 24- 849.28 36- 591.16 48- 462.61 60- 385.90

As you increase the money you pay in months, Your monthly payment goes down.

(9). what factors affect the price of your water bill? How long you run the hot water. How long you take showers. How often you wash clothes. How often you use the dish washer. Letting the water run when you brush your teeth.

(10). What are some factors that affect the price of your electric bill? The use of lights. The use of the television. If the cable box, dvd player, or computer that affects the electric bill. The use of washing machine. The use of fans, radios, telephones,clocks, ect.