The Budget Game

Sophia just opened a bank account and deposited some money into it. This initial amount of money is referred to as the ... ? 

• Income

• Opening Balance

• Closing Balance

• Pension

Answer explanation

The amount of money in a bank account when it is opened is called the Opening Balance. It represents the initial funds in the account.

Amelia and James are planning to buy a house. They came across a term 'mortgage'. What is a mortgage in this context?

• A loan used to purchase real estate

• A tax deduction for property owners

• A form of government assistance for homebuyers

• A type of insurance for renters

Answer explanation

A mortgage is a loan used to purchase real estate.

Oscar has a total income from his job. After deducting all his expenses and taxes, he is left with a certain amount of money. What is the term for this remaining money?

• Net Income

• Gross Income

• Disposable Income

• Operating Income

Answer explanation

Net Income is the term for the money left after deducting expenses and taxes from total income. It represents the final amount available.

Anaya, William, and Kiara are discussing their part-time jobs. William asked, 'What is the term for the total amount of money I earn from my job before any deductions like taxes or social security contributions?'

• Net Income

• Gross Income

• Disposable Income

• Operating Income

Answer explanation

Gross Income is the total amount of money earned before any deductions. It includes all income sources and is an important measure of financial health.

Jacob had a certain amount of money in his bank account at the start of the month. He made some transactions throughout the month. What is the term for the amount of money in Jacob's bank account at the end of the month?

• Income

• Opening Balance

• Closing Balance

• Pension

Answer explanation

The term for the amount of money in a bank account at the end of a period is called the Closing Balance.

Noah, Aarav, and Sophia are discussing their responsibilities as citizens. They are trying to understand what "council tax" is used for. Can you help them understand what it pays for?

• Paying for national defense and security

• Funding public transportation

• Covering the cost of healthcare for residents

• Local services such as rubbish collection, street cleaning, and maintenance of public spaces

Answer explanation

Council tax is a payment made by residents to cover the cost of local services like rubbish collection, street cleaning, and maintenance of public spaces.

Neha has just started a new business and she is learning about different financial terms. Can you help her understand what the term "Paid - In" means?

• It refers to the amount received or deposited in the business account

• It refers to the amount refunded to the business

• It refers to the amount pending to be received by the business

• It refers to the amount unpaid by the business

Answer explanation

The term 'Paid - In' refers to the received or deposited amount. It signifies money that has been paid or deposited into an account.

Grace, Rohan, and George are running a fundraiser. If they have to "Paid-out" the collected money, what does it mean? 

• They need to save the collected funds

• They need to collect more funds

• They need to disburse or distribute the collected funds

• They need to invest the collected funds

Answer explanation

Paid-out means to disburse or distribute funds.

Ava, Sebastian, and Arthur run a small business together. After paying all their business expenses, they have some money left. What is the term for this money, before taxes have been deducted?

• Net Income

• Gross Income

• Disposable Income

• Operating Income

Answer explanation

Disposable Income is the term for the money left after expenses, but before taxes. It represents the amount available for spending or saving.

Jacob bought a painting for $500 and sold it to Elsie for $800. What does Jacob need to pay "capital gains tax" on?

• The profit he made when he sold the painting that had increased in value

• His total income before any deductions

• His income after deducting only expenses

• His total income after deducting all expenses and taxes

Answer explanation

Capital gains tax is a tax on the profit from selling something that has increased in value.