2024 Financial Reality Unit Final

What is a budget?

• A plan for spending and saving money

• A record of past expenses

• A type of financial investment

• A government tax on income

What does 'annual' mean?

• Once every year

• Twice every year

• Once every month

• Every two years

What is meant by net annual income'?

• The total amount of money earned in a year after taxes are taken out

• The total amount of money earned in a year before taxes

• The amount of money spent on taxes annually

• The amount of money saved annually

Which of the following best describes gross income'?

• An individual's income before taxes and deductions are taken

• An individual's income after all deductions

• The total amount of taxes paid annually

• The total expenses incurred in a year

What is a 'variable expense'?

• A cost that occurs regularly but may vary in amount

• A cost that is fixed and does not change

• A one-time financial expense

• A deduction from an individual's salary

What is a Discretionary Expense?

• A mandatory fee required by law.

• A cost for something you want, but don't HAVE to have.

• A fixed monthly payment for essential services.

• A tax imposed by the government.

What is the primary purpose of Insurance?

• To provide a loan for purchasing property.

• To protect against damage to physical property only.

• To protect from possible future financial losses in exchange for payment of a premium.

• To cover the cost of utilities in a home.

What is typically included in Utilities?

• Rent payments to a landlord.

• Services that help keep the household going such as water, electricity, and natural gas.

• Monthly mortgage payments.

• Legal fees for property transactions.

Who is a Landlord?

• A person who borrows money to buy a house.

• A person who pays rent to use a property.

• The person that receives the rent check and owns the property.

• A company that loans money for home purchases.

What is the role of a Tenant?

• The owner of a property who rents it out.

• A person who pays to use land or property owned by someone else.

• A bank that provides mortgages.

• An agent who sells properties.