Financial Literacy Review

Financial Literacy Review

Sales Tax​

​1. Use a percent proportion to calculate how much the sales tax is

2. Add it to the cost of what you are buying ​

​How do I calculate it?

Tax on things you buy or services ​

​What is it?

Fill in the Blank

You buy a pair of shoes for $56 and a pair of socks for $3. If there is a 6% sales tax where you live, how much will you pay in total?

​Income Tax

Be careful about what time frame the question is asking about!​

1. Use a percent proportion to find out how much the tax is

2. Subt​ract it from how much you make

​How do I calculate it?

A tax taken out of money that you earn​

​What is it?

Fill in the Blank

You make $2000 a month. If there is a 2% income tax on your earnings, how much money will you make after taxes for the year?

Simple Interest

I = prt

To find total, add interest to the principal ​

​How do I calculate it?

Interest is money​ you earn or pay for lending or borrowing money

Simple Interest is earned on the principal (original) amount ​

​What is it?

Fill in the Blank

You deposit $300 into an account and leave it to accumulate interest for 8 years. If you have a 3% simple interest rate, how much money would you have at the end of the 8 years?

Compound Interest

A = p(1+r)^t​

This gives you the TOTAL

To find interest, subtract total minus principal ​

​How do I calculate it?

Interest earned on principal and previous interest ​

​What is it?

Fill in the Blank

You deposit $460 into an account and let it accumulate interest for 2 years at a compound interest rate of 4%. How much will you make in interest after 2 years?

Budget​

Some text here about the topic of discussion

To calculate what percent of your income different expenses take up, use the percent proportion ​

​How do I calculate it?

A way of organizing income and expenses ​in order to make good financial decisions. Usually made monthly

​What is it?

Fill in the Blank

Tessa makes $3,200 a month at her job. She spends $960 on rent, $640 on food, $160 on utilities, $480 on her car payment, and $160 on gas. What percent of her budget goes towards rent?

Fill in the Blank

Tim earns $1,400 a month at his job. He spends $350 on his car payment, $112 on gas, $70 on his cell phone, and $210 on other smaller expenses. The rest of his money he puts into his college savings account. How much does he put in this account each month?

Net Worth

Some text here about the topic of discussion

Add all assets

A​dd all liabilities

Subtract Assets minus Liabilities ​

If the Liabilities are greater, your answer will be negative! ​

​How do I calculate it?

The value of what you own (assets) minus the value of what you owe (liabiities)

​What is it?

Fill in the Blank

Pictured here is Betty's financial information. What is Betty's net worth?

Monetary Incentives

If percentage off, use percent set up and subtract from total

If amount off, subtract amount off from total​

Make sure you are comparing the same time frame! ​

​How do I calculate them?

Sale: the cost of the item is reduced in store for a period of time

Rebate: ​The customer pays full price at the store, but submits a rebate request to the company

Coupon: a voucher for ​a discounted price

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​What are they?

Multiple Choice

You have two coupons for a video game that costs $40 but you can only use one. The first one is for 20% off. The second one is for $10 off. Which one is the better deal?

• 20% off

• $10 off

Fill in the Blank

A gym has two membership payment options:

Option A: 25% off a yearly subscription of $308

Option B: Monthly payments of $29

How much money will you save for the year if you chose option A over option B?