Income and Expenses Quiz

What is an example of earned income?

• Birthday gift money

• Payment for mowing a lawn

• Winning a lottery

• A refund on a product

Which type of income is regular and predictable?

• Gifts

• Salary

• Lottery winnings

• Interest from savings

What is the main purpose of income?

• To spend all at once

• To cover expenses and save for future needs

• To pay only for entertainment

• To borrow money

Which of the following is considered unearned income?

• Wages

• Rent collected from property

• Payment for babysitting

• Earnings from freelance work

What are fixed expenses?

• Expenses that change every month

• Expenses that remain the same over time

• Irregular expenses

• Expenses for emergencies

Which of these is an example of a variable expense?

• Monthly rent

• Subscription to a streaming service

• Dining out

What is the primary difference between fixed and variable expenses?

• Fixed expenses are needs; variable expenses are wants.

• Fixed expenses are predictable; variable expenses change.

• Fixed expenses cost less; variable expenses cost more.

• There is no difference.

What is the main purpose of saving money?

• To spend on luxury items

• To be prepared for emergencies and future goals

• To avoid budgeting

• To stop spending entirely

What is an emergency fund?

• Money borrowed from friends in emergencies

• Savings set aside for unexpected expenses

• A monthly expense for emergencies

• Fixed expenses for future use

What does “pay yourself first” mean in saving?

• Paying bills before buying wants

• Saving a portion of your income before spending on other things

• Spending money on fixed expenses

• Using all your money to pay debts