Personal Financial Literacy

Personal Financial Literacy

Multiple Choice

Brenda received $20 for her birthday. She decided to use her money to buy a few fun items. She went

to a store and picked out a board game priced at $8, a craft kit priced at $6, and a puzzle for $6. When

she was ready to leave she took her items to the check out counter. Brenda was surprised when the

cashier told her the cost for the three items was $21.65. What did Brenda forget to consider when she

was choosing the items she would buy?

• Brenda forgot to add the income tax to the total cost of the items.

• Brenda forgot to add the payroll tax to the total cost of the items.

• Brenda forgot to add the sales tax to the total cost of the items.

• Brenda forgot to add the property tax to the total cost of the items.

Multiple Choice

Jenny noticed that her mom keeps a folder with papers about her paychecks, receipts for things she

buys, and receipts for some of the bills she pays. Jenny asked her mom to explain why she saved all

that paperwork instead of throwing it away. What is the most likely reason Jenny’s mom keeps the

records of what she gets paid and what expenses she has to pay during the year?

• Jenny’s mom may need the paperwork when pays her property taxes.

• Jenny’s mom may need the paperwork when she pays sales taxes.

• Jenny’s mom may need the paperwork when she pays her payroll taxes.

• Jenny’s mom may need the paperwork when she prepares the paperwork for her income taxes.

Multiple Choice

Luke is sixteen years old and he just started his first job. He is working as a clerk at a shoe store.

During his first week of work, Luke worked 10 hours and he earned $7.25 per hour. Luke expected to

receive $72.50 for his first week of work. He was shocked when he was given his paycheck. He

discovered he was not paid the full amount he was owed. What did Luke probably not know?

• Luke probably didn’t know about vehicle taxes.

• Luke probably didn’t know about payroll taxes.

• Luke probably didn’t know about sales taxes.

• Luke probably didn’t know about property taxes.

Multiple Choice

The Johnson family is buying a piece of land in the Austin, TX area. They will eventually build their

first home on that piece of land. The cost of the land is $60,000 plus tax. Which kind of tax will they

likely have to pay?

• Income tax

• Payroll tax

• Sales tax

• Property tax

Multiple Choice

Which list below explains how cities use the money they collect from property taxes?

• Cities likely use property tax money to pay United States government workers.

• Cities likely use property tax money to help people who live in other cities or states.

• Cities likely use property tax money to help local schools and police departments, maintain roads,

  and pay for other city services.

• Cities likely use property tax money to help out-of-state schools and police departments, maintain

  roads, and pay for other city services.

Poll

Dorie is filling out an application. She has to write the amount of the gross income that is listed on her

paystub. Dorie looks at the paystub and sees two amounts which would make sense. One amount is

$878 and the other is $798. Which amount is most likely the gross income?

• $878

• $798

• $707

Open Ended

In a complete sentence describe why most workers are not paid the amount of money shown as gross income on their paystubs?

Fill in the Blanks

Multiple Choice

The Smith family had to pay $800 to have their car repaired. This unexpected expense has made it

difficult for the family to pay their regular monthly expenses. Mrs. Smith has told the whole family

that they are going to save money where possible. Which of the options below is the best way for the

Smith family to save money?

• Plan a family vacation

• Use coupons when buying groceries and household products

• Refuse to pay the bills

• Use credit cards to pay for groceries and household products

Multiple Choice

Melinda works at a beach store. She gets a full paycheck every month except during the winter

months. During the winter the store owner cuts the hours everyone has to work, because very few

customers visit the store. Melinda struggles to balance her budget during these months. Which option

will best help Melinda balance her budget?

• Buy anything she wants during the rest of the year instead of saving money

• Ask her parents to pay her expenses during the winter months

• Pay for all her expenses with a credit card

• Reduce her expenses during the rest of the year and save money

Multiple Choice

What are some of the problems a family may have when their expenses exceed their income?

• Their bills will be paid on time.

• They will have money to save for a future family vacation.

• Their electricity, water, phone service, or cable may be disconnected.

• They will be able to buy things they want and things they need.

Multiple Choice

Mrs. Mance Says:

• I have an announcement

• Be nice to the sub and have a great day