Point Value: 10

Budgeting Money

"Budgeting money" means that you actively make decisions on what you will spend money on and how much you will spend.

You will first need to estimate your gross income. Gross income is the amount of  earnings you receive before "withholdings". 

Withholdings are monies that are taken out of your earnings before you receive the income. Many people do not have these amounts withheld and will pay these monies themselves after they receive their gross earnings. Monies that are commonly withheld, or that you will need to be pay later, include income tax and FICA (social security payments). They may also include monies paid into retirement pensions. It is estimated that 28% of the gross income will used for withholdings.