Post-Test Practice

Money is ROUNDED to what decimal point? (Think "cents")

• $1.1 - tenth
• $1.10 - hundreth
• $1.100 - thousandth
• $1 - no decimals

A check is a FORMAL document that orders the bank to pay a sum of money from a person's account to another person. You have to sign a check for it to be legit!

• True
• False

Gross income is your paycheck....

• BEFORE all taxes & deductions, the "pretty" number
• AFTER all taxes & deductions, the "real" number you take home

Net income is your paycheck....

• BEFORE all taxes & deductions, the "pretty" number
• AFTER all taxes & deductions, the "real" number you take home

What is a BUDGET?

• Having more withdrawals than deposits.
• Spending as much money as you earn.
• A financial PLAN for a period of time to keep track of your money.
• Not paying attention to your bank account at all.

A ___________ is when money is ADDED to your account like your paycheck, a bonus, etc.

• Withdrawal [ - ]
• Deposit [ + ]

A ___________ is when money is SUBTRACTED from your account like a bill, tax, expense, etc.

• Withdrawal [ - ]
• Deposit [ + ]

It is recommended that you save 20% of your income every month. If I have $1,200 left at the end of each month and I want to go shopping, how much should I spend?

• All $1,200 - you can always earn more! Saving is not important.
• None... save it all! You don't need a new pair of shoes even though yours are worn through.
• Budget - buy one pair of new shoes under $150 and save the rest.

As a U.S. Citizen, you will pay "taxes" to which levels of government? HINT: you will pay to 3 total!

• Local Gov - Shawnee
• State Gov - Kansas
• Federal Gov - USA
• World Gov

What does it mean to practice "good money management" and follow a budget?