Personal Finance

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  • Topic: Income, Tax, Gross income
  • Pages : 5 (1270 words )
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  • Published : May 29, 2013
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Assignment 2: Financial Planning
(25.0 points)
 
1. Describe one short-term goal that you have and at least one thing you will need to do in order to accomplish that goal. (2-4 sentences. 1.0 points)

One short-term goal that I have is to graduate from high school. I will need to do all of my work and do my best in all of my classes to accomplish that goal.  
2. Describe one long-term goal that you have and at least two things you will need to do in order to accomplish that goal. (2-4 sentences. 1.0 points)

My long-term goal is to go to college. I will need to finish high school with good grades. I will also need to prepare a plan to pay for the college of my choice.

3. Describe two of your long-term financial goals, and explain why these goals are important to you. List at least three steps that might help you accomplish this goal. (4-6 sentences. 2.0 points)

My long-term financial goals are to buy a house and to retire. These are important to me because it pertains to how I will live when I am too old to work. I will need to make a budget, prepare my finances, and spend and save wisely.  

4. Describe an example of a common financial resource, an expense, and a debt. These can be examples from your own life or from other people you know or can imagine. (3-6 sentences. 3.0 points)

A financial resource can be a house because it is worth money to the banks. It is an expense because you have to spend money to pay for it. And it can be a debt if you choose a house that is out of your price range and you cannot meet the payments for the house.

5. Describe a real or made up but realistic example of earned income that you or someone you know has received. What type of work was the income from? Was the income in the form of a salary or wages? (1-2 sentences. 1.0 points)

 A teenager working at a fast food restaurant is an example of earned income. The income is in the form of wages because they are paid by the hour.

6. Describe a real or made up but realistic example of unearned income that you or someone you know has received. (1-2 sentences. 1.0 points)

Winning the lottery is an example of unearned income.
 
7. In your Section_2 folder, navigate to and open the Example_W-2. Use it to answer the questions below.  
            a. What is the name of Jessie Robinson's employer? (0.5 points)

Finance Learning Corporation 

b. What is the total gross income Jessie received from this employer? (0.5 points) TIP: This is in the box labeled Wages, tips, other compensation.    
$16,680.24

c. How much did Jessie's employer withhold for federal income tax from Jessie's paycheck? (0.5 points)

$1,728.00
 
d. How much did Jessie's employer withhold for Social Security tax from Jessie's paycheck? (0.5 points)

$1034.16
 
e. How much did Jessie's employer withhold for Medicare tax from Jessie's paycheck? (0.5 points)

$241.92
 
f. Calculate Jessie Robinson’s net pay by subtracting the three amounts withheld for taxes from Jessie's gross pay.  (0.5 points)

$13676.16
 
8. In your Section_2 folder, navigate to and open the Example_1040EZ, and then complete the steps below to save a copy of the file with your initials in your Section_2 folder.  
a. Click the File menu, and then Click Save a Copy.
 
b. If a Save a Copy dialog box appears, click Save a Copy.
 
c. Make sure the Save in drop-down list is set to your Section_2 folder. If not, click the drop-down list, then click Local Disk (C:), then double-click your course folder, and then double-click the Section_2 folder.  

d. In the Name: field, type Example_1040EZ followed by your initials.  
e. Click Save.
 
9. Follow the instructions below to fill out the 1040EZ form using Jessie Robinson's information. Be sure to save your work! (5.0 points for completing the 1040EZ form correctly according to the instructions below) TIP: You can refer to Section 2, Lesson 2 for help in filling out the form.  

a. Fill out the Income section of...
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