5th Grade Financial Literacy Check

Susanne bought a rug for her home. Which tax did she pay as part of the total cost for the rug?

• Income tax

• Payroll tax

• Property tax

• Sales tax

Which of these is NOT an example of a property tax?

• Tax paid on the value of a farm a person owns

• Tax paid on the value of a piece of land a person owns

• Tax paid on the value of a piece of furniture a person owns

• Tax paid on the value of a home a person owns

A tax that includes Social Security and Medicare taxes and is paid by an employer. Which term best fits this definition?

• Payroll tax

• Property tax

• Sales tax

• Gasoline tax

A tax on retail products based on a set percentage of retail cost

• Income tax

• Payroll tax

• Property tax

• Sales tax

Ms. Parvin pays a tax every year because she owns a house. Which term best describes this tax?

• Income tax

• Payroll tax

• Sales tax

• Property tax

Rosa’s salary is $450 each week. Her take-home pay is $385. Rosa's take home pay is considered her_____ because ______ were taken out.

• gross income

• net income

• deductions

• income

Cheyenne works 15 hours a week at the movie theater. She earns $8 an hour. Which statement about her weekly income is true?

• Her net income is more than $120.

• Her gross income is less than $120.

• Her net income is less than $120.

• Her gross income is more than $120.

Which of these statements about gross income and net income is true?

• Gross income is a tax on all income that a worker earns, and net income is a tax paid by an employer based on a worker’s wages.

• Gross income is a tax paid by an employer based on a worker’s wages, and net income is a tax on all income that a person earns.

• Gross income is the amount an employee is paid after deductions and taxes, and net income is the total amount an employee earns before deductions are applied.

• Gross income is the total amount an employee earns before deductions are applied, and net income is the amount an employee is paid after deductions and taxes.

Penelope earns $450 each month. Penelope made a list of her expenses for the month of May. (look at picture.)

Which change can Penelope make to balance her budget for the month of May?

• Increase her budgeted amount for savings by $20

• Decrease her budgeted amount for entertainment by $20

• Increase her budgeted amount for food by $10

• Decrease her budgeted amount for clothing by $10

Spencer needs to balance his April budget. What can he do so that his budget is balanced?

• Increase his savings this month by $10

• Increase his allowance by $5

• Decrease his piano lessons by $5

• Decrease his entertainment costs by $10