HUMS 202 Study Guide - Quiz Guide: Gross Income, Net Income, Temporary Assistance For Needy Families
26 Apr 2018
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● Set Financial Goals:
○ Identify and write down your financial goals
○ Organize your financial goals
○ Identify small steps to work toward these goals
○ Monitor your progress
● Why Create a Spending Plan?
○ Spending plan: a step-by-step plan for meeting expenses in a given period of
time
○ Helps you reduce anxiety of not knowing whether you have enough money to
pay your bills when they are due
○ Gives you a sense of control over your money, rather than letting money have
control over you
○ Helps you build assets that will improve the quality of life for you and your family
○ Steps:
■ Keep track of your daily spending
■ List your monthly income and expenses
■ Find ways to decrease spending
■ Find ways to increase income
● Determine Income and Expenses
○ Income: money that comes to you from wages, self-employment income, public
assistance (TANF or Food Stamps), child support/alimony, social security/other
federal benefits, tips, etc.
○ Gross income: your total income without deductions
○ Net income: gross income - deductions; also called take-home pay
○ Fixed expenses: do not change from month to month; typically have no control
over how much you pay
■ Rent
■ Fixed loan payment
○ Flexible expenses: often change from month to month; may have some degree of
control over amount you pay
■ Utility bills
● Tips to decrease spending:
○ Develop and follow a spending plan
○ Carry small amounts of cash to limit spending
○ Consider keeping credit cards in a safe place at home -- reduces impulse
spending
○ Use coupons to save money
○ Use a grocery list -- reduces impulse buying
○ Take your lunch to work instead of eating out
○ Pay your bills on time to avoid penalties
○ Check what subscriptions you have
○ Use direct deposit for all income
● Tips to increase spending:
○ Federal tax credits
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
Identify small steps to work toward these goals. Spending plan: a step-by-step plan for meeting expenses in a given period of time. Helps you reduce anxiety of not knowing whether you have enough money to pay your bills when they are due. Gives you a sense of control over your money, rather than letting money have control over you. Helps you build assets that will improve the quality of life for you and your family. Income: money that comes to you from wages, self-employment income, public assistance (tanf or food stamps), child support/alimony, social security/other federal benefits, tips, etc. Gross income: your total income without deductions. Net income: gross income - deductions; also called take-home pay. Fixed expenses: do not change from month to month; typically have no control over how much you pay. Flexible expenses: often change from month to month; may have some degree of control over amount you pay. Carry small amounts of cash to limit spending.
