Lesson 1 Building a balanced budget

William, Maya, and Scarlett are discussing their financial responsibilities. Which of the following is an example of a tax they must pay?

• Bounced Check

• Late fee

• Rental payment

• Social security

David, Priya, and William are discussing their financial responsibilities. David mentions a certain payment he makes to the government. Which of the following is David likely referring to?

• Medicare

• Rental payment

• Line of credit

• Cash payment

Isla, Noah, and Olivia are discussing about their responsibilities as citizens. Noah asks, 'What are taxes?'

• Isla says, 'Taxes are sources of income.'

• Olivia replies, 'Taxes are mandatory payments you make to state and local governments.'

• Noah thinks, 'Taxes are refunds you receive for overpayment.'

• Isla suggests, 'Taxes are optional payments you make to state and local governments.'

Benjamin, Aiden, and Liam are discussing their monthly expenses. Benjamin says a budget is considered balanced when:

• The amount he earns is equal to or less than the amount he spends.

• The amount he spends is equal to or less than the amount he earns.

• The amount he saves is less than the amount he spends.

• The amount he spends is greater than the amount he earns.

Scarlett, Daniel, and Abigail are discussing their monthly budgets. Scarlett says a balanced budget is one where the amount you spend is equal to or less than the amount you earn. Is Scarlett correct?

• Yes, a balanced budget is where the amount you spend is equal to or less than the amount you earn.

• No, a balanced budget is where the amount you spend is greater than the amount you earn.

• Yes, a balanced budget is where the amount you spend is equal to or less than the amount you earn.

• No, a balanced budget is where the amount you save is less than the amount you spend.

Abigail has a balanced budget. This means the amount she spends is equal to the amount she earns.

• She saves; less than she earns

• She spends; greater than she earns

• She saves; greater than she earns

• She spends; equal to she earns

Rohan, Avery, and Noah are discussing their monthly expenses. Which of the following expenses can be considered variable for them?

• Student loan payments

• Rental payment

• Health insurance

• Groceries

Answer explanation

William, Priya, and Mason are discussing their monthly expenses. Which of the following is NOT a fixed expense for them?

• Rental payment

• Internet service

• Cell phone bill

• Movie tickets

Hannah is analyzing her monthly expenses. Which of the following is a fixed expense for her?

• Clothing purchases

• Groceries

• Movie tickets

• Rental payments

Noah recently started working at a new job. What can be considered as his income?

• Income is money Noah earns, usually from working at his job.

• Income is payments Noah makes to the government to pay for roads, bridges, and schools.

• Income is money Noah receives after paying taxes.

• Income is payments Noah makes to the federal government.