Budgeting

Which of the following are TRUE about gross income and net income? (hint: choose 2 correct answers)

• Gross income and net income are the same

• Net income is sometimes called "take home pay"

• Gross income is the total amount earned before deductions

• Net income is the total amount earned before deductions

Tags

CCSS.7.RP.A.3

How does the 50/30/20 rule of thumb for budgeting allocate your income?

• 50% Needs, 30% Wants, 20% Savings & Debt Repayment

• 50% Wants, 30% Needs, 20% Savings & Debt Repayment

• 50% Savings & Debt Repayment, 30% Wants, 20% Needs

• 50% Needs, 30% Savings & Debt Repayment, 20% Wants

Tags

CCSS.6.RP.A.3C

Which of the following is generally the most expensive category in a person’s budget?

• Healthcare

• Clothing

• Transportation

• Housing

Carla’s monthly income is $2,500. She can spend 35% of her monthly income on her housing category, how much money does she have to spend in this category?

• $875

• $110

• $765

• $90

Tags

CCSS.6.RP.A.3C

What percentage is recommended for savings?

• 5%
• 10%
• 20%
• 15%

The graph above represents a family’s monthly budget. The family’s income is $3,125. How much money does the family spend on utilities, transportation costs, and savings?

• $1000.93

• $1093.75

• $1937.50

• $2037.50

Tags

CCSS.6.RP.A.3C

Which of the following statements is supported by the data in the graph? (Total = $2500)

• Housing, transportation, and entertainment make up 50% of the monthly family budget.

• Savings is less than 10% of the monthly family budget.

• Food and utilities make up more than 50% of the monthly family budget.

• Food makes up 1/4 of the monthly family budget

Jay’s monthly income is $2,750. How much of Jay’s monthly income is spent on his car payment and insurance?

• $587.50

• $615.75

• $655.75

• $687.50

Tags

CCSS.6.RP.A.3C

Cardi B created a monthly budget and assigned each category a percentage of her monthly income. Cardi B’s monthly income is $3,500. Which statement is supported by the information in the table?

• Less than $1,000 of Cardi B’s monthly income is for her car payment and insurance.

• Cardi B's budgets $875 of her monthly income for her cell phone, utilities, and emergencies.

• Cardi B puts $200 of her monthly income into savings.

• More than $1,200 of Cardi B’s monthly income is for her rent.

Tags

CCSS.6.RP.A.3C

Why is having a fully funded emergency fund so important when it comes to your financial well-being?

• As long as you have a good-paying job, you really don’t need am emergency fund

• The purpose of an emergency fund is to set money aside for unexpected financial emergencies and to provide a sense of financial security.

• The purpose of an emergency fund is to have money set aside so that you never make large purchases, like vacations.

• None of the above