Financial Literacy Practice

Louis's dad pays a tax to the federal government each year based off the money he earns from his lawn mowing business. What type of tax does Louis's dad pay each year?

• Payroll Tax

• Income Tax

• Sales Tax

• Property Tax

Curtis purchased a new pair of jeans for $18. When Curtis pays for his jeans his total is almost $20 because of taxes. Which type of tax does Curtis pay?

• Payroll Tax

• Income Tax

• Sales Tax

• Property Tax

Your parents pay a tax each year of $3500 that is based off the value of your home. Which type of tax do your parents pay each year?

• Payroll Tax

• Income Tax

• Sales Tax

• Property Tax

Gross income is:

• the total amount of money you earn

• the amount of money you receive after decuctions are subtracted

• the total amount of money you spend

• sales taxes on items you buy

Net income is:

• the total amount of money you earn

• the amount of money you receive after deductions are subtracted from your gross income

• the amount of money that is taken away in the form of taxes

• the hourly rate of pay

David's gross income: $127.25

David's deductions: $25.20

David's net pay: ?

• $102.05

• $102.45

• $112.05

• $152.45

Ms. Vonn’s monthly budget is shown in the chart. She receives two paychecks per month.

• $2,400

• $300

• $500

• $2,100

Wanda's net income for the month of April was $2,438. The table shows her April budget except for an amount in the "Other" Category. What amount, in dollars and cents, should be in the "Other" category in order for Wanda's April budget to be balanced?

• $2,335

• $4,773

• $100

• $103

So far this month Nancy has the expenses and income shown in the chart. Nancy wants to buy some music online but also have a balanced budget. Based on Nancy's current budget, what is the greatest amount of money she can spend on music?

• $10

• $35

• $140

• $5

Adam works 15 hours each week and earns $10 per hour. He thinks he will bring home $150 each week. Is Adam correct? Why or Why not?​

Adam is​ ​ (a)   because ​​ (b)  

• incorrect
• correct
• taxes and deductions are subtracted from $150.
• 15 x 10 = $150 and that is his net income.