Facilitator's Guide - PBS

estate - the assets and debts that a person leaves at death.
estimated taxes - the required advance payment of a current liability that is not already being withheld for, such as investment income, capital
gains, alimony, or rent.
expenses - the cost of goods and services, including those that are fixed (such as rent and auto loan payments), variable (such as food, clothing,
and entertainment), and those that are periodic (car repairs, doctor’s appointments).
federal withholding – in the United States income tax system, employers are required to withhold a portion of each employee’s income and
pay it directly to the U.S. Internal Revenue Service. This withholding acts as a prepayment of tax they will owe at the end of the year, as well as
a direct payment of certain other taxes.
FICA - Federal Insurance Contributions Act – see “Social Security”
finance charge - the total dollar amount paid for credit. Example: A $100 loan repaid with $9 interest plus a $1 service fee has a finance charge of $10.
financial literacy - the ability to use knowledge and skills to manage one’s financial resources effectively for a lifetime of financial security.
financial security - financial freedom from doubt, anxiety, or fear; a confident backup of funding in the form of assets or savings which can be used
in a time of need.
fixed expenses - an item in your budget whose cost is the same each month, such as rent or mortgage payment.
freelancer - a person who makes himself or herself available to be engaged for work on particular assignments or projects, rather than being
engaged on a long-term or permanent basis by a single employer.
fringe benefits - any additional benefit.
grace period - a time during which a borrower can pay the full balance of credit due and not incur finance charges or pay an insurance premium
without penalty.
gross wages - total of an employee’s regular compensation for work done including allowances, overtime pay, commissions, and bonuses, before
any deductions are made.
health insurance - covers specific medical costs associated with illness, injury, and disability.
homeowners insurance - provides property damage and liability coverage under specific circumstances.
I bond - an inflation-indexed savings bond offered by the U.S. government. Series I bonds pay a fixed interest rate that is lower than the rate
of traditional savings bonds, but they also pay a variable rate that increases with inflation and is recalculated semiannually.
income tax deduction - an amount subtracted from an individual’s adjusted gross income to reduce the amount of taxable income.
independent contractor - a person or business which provides goods or services to another entity under terms specified in a contract. Unlike an
employee, an independent contractor does not work regularly for a company.
Individual Retirement Account (IRA) - an investment with specific tax advantages. A traditional IRA defers taxes on earnings until withdrawal
and, under certain circumstances, allows the deduction of some contributions from current taxable income. A Roth IRA requires after-tax
contributions only, but allows tax-free withdrawals under certain rules.
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