Financial Literacy Basics: Understanding Your Income

Front

What is a primary source of income?

Back

Employment salary

Front

Which of the following is considered a passive income? Salary from a job, Money earned from a rental property, Income from a day's work, A one-time gift

Back

Money earned from a rental property

Front

What is the main purpose of creating a budget?

Back

To manage income and expenses

Front

Which of the following is a characteristic of a progressive tax system? Everyone pays the same tax rate, Lower-income earners pay a higher percentage of their income in taxes, Higher-income earners pay a higher percentage of their income in taxes, Taxes are optional for high-income earners

Back

Higher-income earners pay a higher percentage of their income in taxes

Front

What is gross income?

Back

Income before any deductions

Front

Which of the following would be considered a variable expense in a budget? Rent, Car insurance, Dining out, Mortgage

Back

Dining out

Front

How can managing multiple income streams benefit financial stability?

Back

Provides financial security through diversification

Front

What is net income?

Back

Income after taxes and deductions

Front

Which of the following is not a source of income? Salary, Dividends from stocks, Loans, Rental income

Back

Loans

Front

What is the purpose of income tax?

Back

To pay for public services and infrastructure