PFL Semester Test Flash Cards

Front

What is the first step in creating a budget?

Back

Tracking income and expenses

Front

A fixed expense is:

Back

A cost that remains the same every month

Front

Which of the following is an example of a variable expense?

• Mortgage payment
• Grocery bill
• Car insurance
• Property taxes

Back

Grocery bill

Front

Why is it important to save for emergencies in a budget?

Back

To cover unexpected expenses

Front

What is the recommended percentage of income to save each month?

Back

10%

Front

What is the purpose of income taxes?

Back

To fund government programs and services

Front

Which form is used to report annual earnings and taxes withheld?

Back

W-2

Front

What is the sales tax?

Back

A tax on goods and services purchased

Front

What is deducted from a paycheck for federal programs like Social Security?

Back

FICA tax

Front

What is the deadline to file federal income taxes in the United States?

Back

April 15