Building a Balanced Budget

Which of the following is true about income?

• income is usually money you earn from working on a job

• income is payments you make to the government to pay for roads, bridges, and schools

• income is money you receive after paying taxes

• income is payments you make to the federal government

Which of the following would NOT be considered a want?

• a ticket to the football game

• a new pair of earbuds

• a meal for lunch

• designer shoes

Which of the following statement is TRUE about variable expenses?

• The amount you spend on variable expenses do not change during certain months and do change during other months.

• The amount you spend on variable expenses changes from month to month.

• The amount you spend on variable expenses remain the same from month to month.

• None of the above are true.

What is one way to begin saving startup capital?

• Withdraw money from your savings account.

• Take out a loan

• Set aside a portion of your income each month

• Set aside a portion of the money you owe in taxes each month.

When is a budget considered to be balanced?

• When the amount you spend is greater than the amount you earn.

• When the amount you save is less than the amount you spend.

• When the amount you earn is less than the amount you spend.

• When the amount you earn is equal or less than the amount you spend.

What is take home pay?

• The amount you earn each month in income minus what you save.

• The amount left over from your monthly paycheck before deductions.

• The amount left over from your monthly paycheck after deductions.

• The amount you earn in income minus what you spend.

Which of the following is an example of a tax you must pay?

• late fee

• mortgage payment

• bounced check

• social security

When creating a personal budget, it is important to consider things you ____________, _______________ things you ______________.

• need; at the same time as, want

• need; before, want

• want, before, need

• need, after, want

Which of the following is NOT a fixed expense?

• mortgage payment

• cell phone bill

• movie tickets

• Internet service

Which type of taxes do you pay to the state where you earn an income? These taxes pay for schools, public transportation and other important services.

• Social Security

• Medicare

• Federal Taxes

• State Taxes