Personal Income, Deductions and Spending
Personal Income
What is Income?
It can come from a variety of sources, such as:
1.
2.
3.
4.
Deductions
1. ___________________ is the total amount of money that a person makes. A person is not allowed to keep all money that they make.
2. ___________________ is the amount of “take home” money after you pay Employment Insurance, Canadian Pension Plan, and Income Tax.
These three deductions must be made by the employer before the employee is paid. Other deductions may also be made.
Employment Insurance is used to ...
Canadian Pension Plan is used to ...
Income Tax is used to pay for ...
Spending
Some of the money that a person makes will need to be spent on monthly re-curring expenses; like food, shelter and clothing. What type of Maslow need are these types of expenses?
Disposable or Discretionary Income is ...
1. ___________________ is used to purchase luxury items such as vacations, cottages, eating out, and any other types of entertainment. The amount of ________________ varies on the difference between your ________________ and the total amount of expenses you have.
2. Overall purchasing Purchasing Power is measured by the ______________________________ (CPI).
3. When prices tend to rise over the year(s), this is known as _____________ . Therefore, the dollar is worth less (it didn’t buy you as much goods as last year)
Personal Spending
Why do you we buy goods (stuff)?
a.
b.
c.
d.
e.
What is impulse buying?
Why is impulse buying it not good?
When you purchase materials to impress others it is called __________________________. It is caused by 2 factors.
i.
ii.