Financial Literacy

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What is a budget?

Back

A budget is a plan that outlines how much money you earn and how much you spend over a certain period.

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What is net income?

Back

Net income is the amount of money you take home after taxes and other deductions are subtracted from your gross income.

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What is sales tax?

Back

Sales tax is a tax imposed on the sale of goods and services, usually calculated as a percentage of the purchase price.

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What does it mean to balance a budget?

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To balance a budget means to ensure that your income is equal to or greater than your expenses.

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What is the difference between income and expenses?

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Income is the money you earn, while expenses are the costs you incur for goods and services.

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How can you increase your savings?

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You can increase your savings by reducing your expenses or increasing your income.

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What is a fixed expense?

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A fixed expense is a cost that does not change from month to month, such as rent or mortgage payments.

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What is a variable expense?

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A variable expense is a cost that can change from month to month, such as groceries or entertainment.

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What is the purpose of taxes?

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Taxes are used by the government to fund public services and infrastructure, such as schools, roads, and healthcare.

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What is the importance of tracking your spending?

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Tracking your spending helps you understand where your money goes and allows you to make informed decisions about your budget.