Missouri Personal Finance Test (MoPFA)
Income - correct answers✅Earnings received as wages,
rent, profit, or interest
Wages - correct answers✅Payment for work
Salary - correct answers✅Payment for work usually
calculated in periods of a week or longer, tied to specific
duties
Discretionary income - correct answers✅Amount of
income available for spending after the essentials have
been taken care of (food, clothing, shelter)
Direct deposit - correct answers✅Used to transfer
money directly from employer's payroll to your checking
or savings account
Employee benefits - correct answers✅Something of
value that an employee receives in addition to the hourly
wages/salary
Examples of employee benefits - correct answers✅life
insurance, health insurance, dental/vision insurance,
retirement plan (401 k)
401 k - correct answers✅Example of a retirement plan
,Missouri Personal Finance Test (MoPFA)
Pension plan - correct answers✅Gives a steady income
to a person from an employer, labor union, or
government entity
- After retirement
Payroll deductions - correct answers✅Government
requires or employee requests amounts subtracted from
a paycheck
Required payroll deductions - correct answers✅Social
security, medicare, income taxes
Optional payroll deductions - correct answers✅Loan
payments, savings deposits
Income tax - correct answers✅Tax on the total income
of an individual
Social Security Tax - correct answers✅Tax deducted
from employee paychecks and paid by employers
- Pays for a program that provides retirement and
disability for US citizens who have paid into the system
, Missouri Personal Finance Test (MoPFA)
FICA (Federal Insurance Contrebutions Act) - correct
answers✅Employee and employer each contribute
income for Social Security and Medicare every year
Budget - correct answers✅Plan for managing income
and expenses
Net Pay - correct answers✅Take-Home Pay, the
remaining pay after deductions have been subtracted
Gross Pay - correct answers✅The amount you are paid
per period before deductions are subtracted
Expense - correct answers✅Money going out to
another person/group to pay for a good or service
Fixed Expense - correct answers✅A cost that does not
change from period to period and is paid on a regular
basis
Examples of a fixed expense - correct
answers✅Mortgage or rent payments, car payments,
real estate taxes, and insurance premiums
Variable Expense - correct answers✅A cost that
changes from period to period
Income - correct answers✅Earnings received as wages,
rent, profit, or interest
Wages - correct answers✅Payment for work
Salary - correct answers✅Payment for work usually
calculated in periods of a week or longer, tied to specific
duties
Discretionary income - correct answers✅Amount of
income available for spending after the essentials have
been taken care of (food, clothing, shelter)
Direct deposit - correct answers✅Used to transfer
money directly from employer's payroll to your checking
or savings account
Employee benefits - correct answers✅Something of
value that an employee receives in addition to the hourly
wages/salary
Examples of employee benefits - correct answers✅life
insurance, health insurance, dental/vision insurance,
retirement plan (401 k)
401 k - correct answers✅Example of a retirement plan
,Missouri Personal Finance Test (MoPFA)
Pension plan - correct answers✅Gives a steady income
to a person from an employer, labor union, or
government entity
- After retirement
Payroll deductions - correct answers✅Government
requires or employee requests amounts subtracted from
a paycheck
Required payroll deductions - correct answers✅Social
security, medicare, income taxes
Optional payroll deductions - correct answers✅Loan
payments, savings deposits
Income tax - correct answers✅Tax on the total income
of an individual
Social Security Tax - correct answers✅Tax deducted
from employee paychecks and paid by employers
- Pays for a program that provides retirement and
disability for US citizens who have paid into the system
, Missouri Personal Finance Test (MoPFA)
FICA (Federal Insurance Contrebutions Act) - correct
answers✅Employee and employer each contribute
income for Social Security and Medicare every year
Budget - correct answers✅Plan for managing income
and expenses
Net Pay - correct answers✅Take-Home Pay, the
remaining pay after deductions have been subtracted
Gross Pay - correct answers✅The amount you are paid
per period before deductions are subtracted
Expense - correct answers✅Money going out to
another person/group to pay for a good or service
Fixed Expense - correct answers✅A cost that does not
change from period to period and is paid on a regular
basis
Examples of a fixed expense - correct
answers✅Mortgage or rent payments, car payments,
real estate taxes, and insurance premiums
Variable Expense - correct answers✅A cost that
changes from period to period
