The phrase “take-home pay” refers to which of the following?

The phrase “take-home pay” specifically refers to the net income after all deductions have been made. This amount represents what an employee actually receives in their paycheck, which can be spent or saved after the necessary taxes and other deductions (like retirement contributions and health insurance) have been accounted for.

It is important to differentiate this from total income, gross income, or savings. Total income and gross income refer to the amount earned before any deductions are taken out, which would not accurately represent what someone takes home. Similarly, savings refer to the money that is set aside and does not encompass the concept of take-home pay. Therefore, identifying take-home pay with net income after deductions reflects a clear understanding of financial terms and their practical implications in budgeting and personal finance.