Understanding Financial Terms Flashcard

Front

What is the main difference between a salary and wages?

Back

Salary is a fixed amount paid regularly, while wages are paid based on hours worked.

Front

Which of the following is an example of a fixed cost? Grocery shopping, Monthly rent, Buying new clothes, Eating out at restaurants

Back

Monthly rent

Front

If you earn $500 a week, what is your monthly income assuming 4 weeks in a month?

Back

$2,000

Front

Which of the following best describes a budget? A list of all the things you want to buy, A plan for how to spend and save your money, A record of all your past expenses, A summary of your income sources

Back

A plan for how to spend and save your money

Front

What is the difference between monthly expenses and annual expenses?

Back

Monthly expenses are paid every month, while annual expenses are paid once a year.

Front

Back

$500

Front

Which of the following is considered an expense? Receiving a paycheck, Paying for groceries, Earning interest from a bank, Getting a gift

Back

Paying for groceries

Front

Back

$75

Front

What is the primary purpose of having a budget?

Back

To help manage your income and expenses

Front

If you receive a salary of $2,400 per month, what is your annual salary?

Back

$28,800