Financial Literacy Vocabulary

Rent, insurance, car payment, and Netflix subscriptions are fixed expenses.

• True

• False

What is interest?

• Something you do not have in economics

• The money corporations pay to their stockholders

• To set aside income for a period of time so that it can be used later

• The payment people receive when they lend their money or allow someone else to use their money

Mrs. Allen took home $1,245 after taxes. What is this considered?

• net income

• gross income

• deposits

• income tax

Before taxes and deductions, Mrs. Allen's pay was $1,600. This is considered her -

• net income

• gross income

• deposits

• income tax

If Sammy’s expenses are greater than his income, what must he do to balance his budget?

• Earn more money
• Spend less money on expenses
• Earn more money AND spend less
• None of the above

What is a plan for how you spend your money?

• income

• sales tax

• budget

• deposits

What is money you earn?

• income

• budget

• assets

• net worth

Going to work at a job is a way to....

• get fired

• earn money

• make new friends

• buy a motorcycle

What causes one job to pay more than another job?

• the length of training, amount of education level and level of job difficulty
• the age of the person working
• where the person working lives
• how many kids the person working has

An expense that does not change from month to month is called ...

• variable expense

• profit

• fixed expense