Seriously, we’ve never been so excited to watch someone talk about statistics.
In just four minutes, learn everything you need to know about the relationship between income and lifespan, and how the wildly the world has changed since 1810. Very cool.
Although previous studies suggested that the beneficial effects of a good kindergarten teacher fade over time, a new study indicates the opposite, making a good case for the value of education.
“The worry has been that education didn’t translate into earnings. But this is telling us that it does and that the fade-out effect is misleading in some sense.”–Douglas Staiger, an economist at Dartmouth
Income tax is an annual tax collected by federal, state, and sometimes local governments. It is structured so that the more money you earn, the higher the percentage you pay in income taxes. Income tax is the main source of revenue for the U.S. government.
Real income is how much an individual, organization, or country can actually purchase or do with its earnings after taking inflation into account; that is, its purchasing power. In an environment where prices are increasing, even if you made the same amount of money, say $100, this year as you did last year, your real income was greater last year because you could buy more with that $100 last year than you can this year.
Disposable income is the money you have left over after taxes to use as you wish. For instance, if your paycheck says $100, the government gets a cut before you actually take home your money. If the government gets 25%, your disposable income is the remaining $75.
A salary is the compensation (e.g. salary and benefits) you earn for working at a job. Salaries are usually paid on a weekly or bi-monthly basis, and are generally referred to as an annual amount.
Pay-yourself-first is the smart money management practice wherein you place the money you’ve budgeted to save in your savings first thing – before you pay for bills, buy food, clothes, or anything else. This way, you’re making savings a priority and ensuring that you get some of your income before anyone else does.
Discretionary income is the portion of an individual’s income that is left after he or she has taken care of all essential expenditures, such as rent and food purchases. It’s basically the part of your paycheck or income that you’re free to use on whatever you want.
Profit is the positive monetary gain after subtracting the amount earned and the amount spent over the course of a period of time. For example, if you bought a pair of sneakers for $80 and then sold them on eBay for $120, your profit would be $120 (income) – $80 (expense) = $40 (profit).