Personal Financial Literacy Review

Personal
Financial
Literacy

TAXES, PAYMENT METHODS, INCOME, EXPENSES

Four Types

of Taxes…

Multiple Choice

Which type of tax do you pay when you buy something at the store?

• Sales

• Property

• Income

• Payroll

Multiple Choice

Which type of tax is withheld by your employer from your paycheck?

• Sales

• Property

• Income

• Payroll

Multiple Choice

Which type of tax is paid to the government and is based on the money you make each year?

• Sales

• Property

• Income

• Payroll

Multiple Choice

Which type of tax do you pay on things you own, like your house or land?

• Sales

• Property

• Income

• Payroll

There are four basic payment methods we use.

Four Main Payment Methods

Takes money from your
bank account
Plastic Card

Borrows money that you
have to pay back
Plastic Card

Send money from your
bank account by an app
Scan phone at a register

Debit Card

Credit Card

Electronic Payment

Takes money from your
bank account
Have to write it out

Check

Poll

Which type of payment method do you think is the easiest to use?

• Debit Card

• Credit Card

• Check

• Electronic Payment

What are the two types of income?

Gross Income vs Net Income

●Gross Income is the total amount of money you make before taxes are deducted

●Net income is the amount of money you receive after taxes

●Deductions are the taxes taken out of your income

●G-D=N

What are the two types of expenses?

Fixed Expenses vs Variable Expenses

Fixed expenses do not change from month to month

ex) rent, car payment, wifi payment

Variable expenses do change from month to month

ex) water, electricity, food

Multiple Choice

Which is an example of a fixed expense?

• Water Bill

• Groceries

• Rent

• Electric Bill

Multiple Choice

Which is an example of a variable expense?

• Rent

• Water Bill

• Car Payment

• WiFi Payment

A balanced budget is when…

Multiple Choice

True/False: A budget is balanced when the expenses are greater than the income.

• True

• False