Financial Literacy Test

Alex bought a new car priced at $13,840 but he paid $14,597. What kind of tax did he pay?

• Sales Tax

• Property Tax

• Income Tax

• Payroll Tax

My net income is $1,200 for the month. My expenses are $900. What can I do to balance my budget?

• Buy less groceries that month

• Nothing

• Put $300 in a savings account

• Borrow money from the bank

A city collects money from the people who live in it to pay for police protection and other city services. People who own houses or land pay this tax. What kind of tax is this?

• Net income

• Property Tax

• Sales Tax

• Payroll Tax

What is the total amount of money earned BEFORE taxes are taken out called?

• Expenses

• Gross Income

• Income Tax

• Net Income

I want to buy a new book from the store. What can I do to help reach my goal?

• Buy snacks at the football game

• Do chores and ask for allowance

• Play at the park with my friends

• Give up

I thought my paycheck was supposed to be $225. When I got my paycheck it was only $180. What was taken from my paycheck?

• Sales Tax

• Payroll Tax

• Property Tax

• Income Tax

What is the amount of money a worker takes home AFTER taxes have been taken out called?

• Net Income

• Gross Income

• Income Tax

• Expense

What kind of expenses can change from month to month and be easily adjusted?

• Taxes

• Fixed Expenses

• Income

• Variable Expenses

If you spend more than your income your budget is unbalanced. What could you do to balance your budget?

• Buy some new games

• Decrease some variable expenses

• Decrease some fixed expenses

• Spend more on groceries

What are taxes?

• Money the government uses to help keep the country running.

• Money you earn

• A donation to a charity

• Money in your savings account