Unit 2B: MoneyAll About Income

Mr. ElsesserIntroduction to

Financial Management

DO NOW:BRAINSTORM:

Answer this question…What are some factors that can affect an individual’s income?

Sources of Income___________________________________________________________________________________________________________________Rental Income

______________________________________________________________.

Windfall Income ___________________________________________________________________________. Ex: Gambling,

lottery, gifts, etc.

Inheritance: _______________________

_____________________________________.

How does money enter our lives?

Factors Influencing Income_____________________

Monetary ____________________________________

______________. Examples: Cash bonus, stock

options, commission, raises.

Non-Monetary ____________________________________

___________________: Examples:

Restaurant coupons, relocation costs, movie tickets, birthday recognition, free lunch,/snack/beverages, parking spaces, plaques, discounts, tuition reimbursement, flex time, apparel, loan assistance, gym memberships, healthcare, life insurance, daycare, free cell phone or computer, advising services.

_____________________ Knowledge Skills Level of Education

_____________________ Recession

_________________________________________________________________________________.

Depression ____________________________________

____________________________________________.

Both can lead to high rates of unemployment, impacting INCOME.

Factors Influencing IncomeValue of Money

Inflation _____________________________________________________________________________________. Leads to:

______________________________. ______________________________. ______________________________.

Deflation: ___________________________________________________________

__________________________. Leads to

______________________________. ______________________________. ______________________________. ___________________________________________________.

Factors Influencing IncomeTAXATION

What is a Tax? ______________________________________________________________________________________________________________________________________________________.

Impact on Personal Income: ______________________________________________

__________________________. ______________________________________________

____________________________________. Goal: Reduce your Tax Liability: ______________________________________.

Why do we TAX?______________________________________________.

Cigarettes, alcohol, gasoline, etc. ______________________________________________________________________________:

_________________________ _________________________ _________________________ _________________________ _________________________ _________________________ _________________________

_________________________Who can assess taxes?

_________________________ _________________________ _________________________

More on TAXATIONExamples (Types) of Taxes:

Purchases:_______________________________________.__________________________________________________________________________.

Property:________________________________________.As value increases, so does the amount of taxes.

__________________________________________________________________________.

More on TAXATIONExamples (Types) of Taxes:

Wealth: Estate Tax:

_________________________________________________________________________.

Inheritance Tax: ______________________________________________________________

___________.

Gift Tax: ______________________________________________________________

_________________________________. ______________________________________________________________

_________________________________. ______________________________________________________________

_________________________________.

More on TAXATIONExamples (Types) of Taxes:

Earnings:_____________________________________________________________________________. Social Security Tax:______________________________________________________________________________________________________________________.

Personal Income Tax:______________________________________. _____________________________________________________________________________.

More about TAXATION_____________________________________________________________________________________________.

Americans are taxed though the Progressive Tax System:

_____________________________________________________________________________________________________________.

Bankrate.com Income Tax Brackets

What kinds of income are we required to report and pay taxes on?

_______________________ _______________________ _______________________ _______________________ _______________________ _______________________ Along with several others