5th Gr. STAAR Released Questions for Financial Literacy

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

What is gross income?

Back

Gross income is the total amount of money earned by an individual before any deductions or taxes are taken out.

Front

What is net income?

Back

Net income is the amount of money an individual takes home after all deductions and taxes have been applied.

Front

What is a balanced budget?

Back

A balanced budget occurs when total income equals total expenses, meaning there is no deficit or surplus.

Front

What is a property tax?

Back

A property tax is a tax based on the value of real estate owned, such as land or buildings.

Front

What is a payroll tax?

Back

A payroll tax is a tax imposed on employers and employees, typically used to fund social security and healthcare programs.

Front

What is a sales tax?

Back

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

Front

What is an expense?

Back

An expense is any cost incurred in the process of earning income, such as rent, utilities, and groceries.

Front

What is income?

Back

Income is the money received, especially on a regular basis, for work or through investments.

Front

What is the difference between fixed and variable expenses?

Back

Fixed expenses remain constant each month (e.g., rent), while variable expenses can change (e.g., groceries).