Understanding Your Money

What is the minimum amount of money you should save or “pay yourself”?

• 10%

• 15%

• 20%

• 25%

A spending plan that allows you to manage your money

• Expense

• Income

• Balance

• Budget

Money that is paid to the government for public purposes are called what

• Taxes

• Income

• Social Security

• Expenses

Which of the following would NOT be an example of something that tax dollars are used for?

• Military

• Government buildings

• Doctor salaries

• Roads and Bridges

Knowing how much money you have in your bank account at any given time is called knowing your what?

• Income

• Expenses

• Balance

• Budget

What happens if your expenses are greater than your income?

• You go in debt

• You have to file bankruptcy

• You get a loan

• You use a credit card

What does IRS stand for?

• International Reserve Service

• Internal Reservation Service

• Internal Revenue Service

• International Revenue Station

Which of the following is an example of a fixed expense?

• Car loan payment

• Electric bill

• Gas in a car

• Groceries

An item you would like to have, but is not necessary for survival is known as what?

• Wants

• Needs

• Necessities

• Supplies

A budget is important because...

• It allows you to see where you are spending money

• It allows you to plan for expenses

• It helps you manage your money and stay out of debt

• All of the above