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of insurance for protecting your assets, including home, car, healthcare, and life insurance. We’ll review less obvious, but devastating ways hard-earned wealth can be lost, such as the risks of co-ownership and co-signing, addiction, gambling, and crime. Finally, we will explore the civilized world’s way of preserving a little wealth and dignity in the face of overwhelming financial loss: bankruptcy!
Fin Lit Trivia Fin Lit Trivia Fin Lit
II. What is Income? Income is the money you earn on a regular basis from a job or other income-producing activity . This can be in the form of a salary, hourly wage, tips, or commission . For most people it simply means the money you get paid to work. If the job ends, so do your earnings. Income is regular and fairly immediate. With a job, you get paid within a relatively short period — usually every two weeks. Award money and money earned from investments are also counted as income.
Free Money for Everyone!
In 2016, Switzerland held a vote on a pro- posal to automatical- ly provide $2500 per month to every adult citizen. The proposal was defeated.
In America, income is important because it determines many things about how your life plays out. Income determines the amount of taxes you pay, your lifestyle, and even impacts your health and life expectancy . Income dictates your level of social mobility , which is the ability to move up in social class and gain more opportunity to build wealth for things like a nice home, a car, an education for your kids, and other quality of life items. Types of Income. There are many different types of income , all of which are tracked by the U.S. Government through the Bureau of Labor Statistics (BLS) . The government tracks how much money people make and the sources of that money because such data provides insight into the financial health of the nation. BLS data is an indicator of socioeconomic trends , such as how income is distributed across the U.S. population. The data reveals how much income the richest American families earn, how much income the average American family earns, and how many American families earn below-average income. Income is also tracked by age, race, gender, and location . PRODUCT PREVIEW
Personal income
This includes a person’s salary and wages, distributions from a retirement fund, investments, and more. This refers to the total amount of money available for an individual to spend or save after taxes have been paid . This refers to the combined earnings of everyone in a household over the age of 15 . Generally, these are members of a family or extended family who live under the same roof, and share or combine expenses. It does not include a roommate arrangement. A household can consist of just one person. This is the dollar amount that divides income distribution in the U.S. into two equal groups ; half of the population has income above that amount and half has an income below that amount. As of 2016, the median income in the U.S. is $51,939. Median incomes are also tracked by state .
Disposable Personal Income (“DPI”) Household income.
Median income
Reflect on Learning: Can you recall sources and features of income? Income is money earned from a job, usually received on a regular basis and immediate basis. If the job ends, the income stops. Income provides social mobility and the opportunity to build wealth.
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Chapter 1 | Getting Personal: You and Your Money
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