Understanding Income and Expenses

Which of the following is considered earned income?

• Money from your job

• Money from your savings

• Money from renting a house

You earn $500 from your job and $100 from a part-time business. Which of these is your earned income?

• $100

• $500

• Both $500 and $100

Which of the following is an expense?

• Money you earn from your job

• Money you pay for food

• Money you get from an investment

Which of the following is a fixed expense?

• Grocery shopping

• Rent payment

• Eating out

You spend $200 on rent and $50 on eating out. Which of these is a variable expense?

• Rent

• Eating out

• Both rent and eating out

You buy a phone for $100 and a phone for $500. Which one is expensive?

• The $100 phone

• The $500 phone

• Both are expensive

Which of the following is a discretionary expense?

• Rent payment

• Buying a toy

• Utility bill

If your income is $1,000 and your expenses are $900, how much money do you have left?

• $100

• $1,000

• $900

Which of the following is an example of passive income?

• Money from a part-time job

• Money from renting out a room

• Money from tips at a restaurant

If you buy a shirt for $15 and shoes for $100, which is cheap?

• The shirt

• The shoes

• Both are cheap