Fraction and Financial Literacy Flashcard

A budget is a plan that outlines how much money you can spend and save over a certain period.

Withholding money means taking a portion of an employee's earnings to pay for taxes and other deductions before they receive their paycheck.

Net income is the amount of money a person takes home after taxes and other deductions are subtracted from their gross income.

Gross income is the total amount of money earned before any deductions, such as taxes, are taken out.

A payroll tax is a tax that employers withhold from employees' paychecks to pay for government programs, such as Social Security and Medicare.

Add the prices of all items together to find the total cost.

A fraction represents a part of a whole and is written as $$\frac{a}{b}$$ , where 'a' is the numerator and 'b' is the denominator.

Dividing a fraction by a whole number means you are splitting the fraction into that many equal parts.

Net income is derived from gross income by subtracting taxes and other deductions.

The purpose of a budget is to help individuals manage their money effectively, ensuring they do not overspend.