Financial Literacy

Which of these is NOT an example of property tax

• Tax paid on the value of a farm someone owns

• Tax paid of the value of a piece of land someone owns

• Tax paid on a piece of furniture someone owns.

• Tax paid on the value of a home someone owns.

A tax that includes Social Security and Medicare taxes and is paid by an employer

• income tax

• payroll tax

• sales tax

• property tax

A tax on retail products based on a set percentage of retail cost.

• sales tax

• property tax

• income tax

• payroll tax

Mr. Pennington added a pool to his backyard, which increased the value of his home. Which tax would be affected by this?

• Payroll tax

• property tax

• income tax

• sales tax

Jacob has a job where he earns $500 per week. When he received his first paycheck, it was for $412 instead of $500.

• His net income was $500, but his gross income was $412 after taxes were deducted

• His gross income was $500, but his net income was $412 after taxes were deducted.

• His gross income was $500, but he only received $412 after his rent was deducted.

• His gross income was $412 because he did not work the full week.

James bought a new game that was $59.99. When he went to the register, his total was $64.79. What is the best explanation of this?

• He paid income tax

• He paid sales tax

• He paid payroll tax

• He paid property tax

Kelly's budget is shown. What additional item would help balance her budget?

• Income: Mowing lawn $20

• Income: babysitting $25

• Expense: Clothing $20

• Expense: Gasoline $65

When you deposit money into your bank account, your balance

• decreases

• increases

• does not change

• none of the above

Cortez checked his budget for December and realized that he had more expenses than income. What is the best way for him to balance his budget?

• decrease his expenses

• increase his expenses

• borrow money from his parents

• apply for a loan

When you begin your budget, the first step is to...

• Look at your income to see how much money you have each month.

• subtract your income from your expenses.

• calculate your income for each month, and determine how much money is needed for expenses.

• Look at all the different things you want to spend your money on.