Financial Literacy - 7th Grade TEKS 13B

Front

What is a budget?

Back

A budget is a plan that outlines expected income and expenses over a specific period, helping individuals manage their finances.

Front

How do you calculate a percentage of income?

Back

To calculate a percentage of income, multiply the total income by the percentage (in decimal form). For example, 20% of $1,000 is $1,000 x 0.20 = $200.

Front

What is the purpose of savings in a budget?

Back

Savings are set aside for future needs or emergencies, helping individuals achieve financial security and reach long-term goals.

Front

If Lauren's monthly income is $2,250 and she saves 16%, how much does she save?

Back

$360 (calculated as $2,250 x 0.16).

Front

What is the formula to find the percentage of a specific expense in a budget?

Back

(Expense Amount / Total Income) x 100 = Percentage of Income.

Front

If Steve's car payment is $428 and his monthly income is $2,675, what percentage of his income goes to the car payment?

Back

16% (calculated as ($428 / $2,675) x 100).

Front

What is the significance of tracking expenses in a budget?

Back

Tracking expenses helps individuals understand their spending habits, identify areas to cut costs, and ensure they stay within their budget.

Front

If Allan spends $1,280 on rent and groceries from a $3,200 income, what percentage does he spend on these categories?

Back

40% (calculated as ($1,280 / $3,200) x 100).

Front

What are fixed expenses?

Back

Fixed expenses are costs that do not change from month to month, such as rent or mortgage payments.

Front

What are variable expenses?

Back

Variable expenses are costs that can fluctuate each month, such as groceries, entertainment, and utilities.