Balancing a Budget: STAAR Practice Insights

The video tutorial covers the fifth-grade concept of balancing a budget, focusing on personal financial literacy. It uses a problem from the 2018 Texas STAAR test to illustrate the difference between net and gross income, and how to balance a budget by analyzing income and expenses. The tutorial guides viewers through calculating the missing amount needed to balance Wanda's budget, emphasizing the importance of understanding financial concepts.

What grade level is associated with learning about budget balancing in Texas?

• 6th grade

• 4th grade

• 7th grade

• 5th grade

What is the purpose of balancing a budget?

• To ensure expenses do not exceed income

• To avoid paying taxes

• To spend all available money

• To increase gross income

What is the difference between net income and gross income?

• Net is before taxes, gross is after taxes

• Gross is theoretical earnings, net is actual earnings after deductions

• Gross is only for businesses

• Net is always higher than gross

What does Wanda's net income amount to?

• $2700

• $2500

• $2438

• $2600

Why is it important to distinguish between net and gross income?

• To calculate taxes correctly

• To understand actual take-home pay

• To plan expenses accurately

• All of the above

Which category of Wanda's expenses is the highest?

• Utilities

• Rent

• Food

• Savings

How much does Wanda spend on utilities?

• $450

• $275

• $325

• $285

What might 'transportation' expenses include for Wanda?

• All of the above

• Uber rides

• Public transportation

• Car payments

What is the total of Wanda's expenses excluding the 'other' category?

• $2438

• $2335

• $2200

• $2500

How much should be allocated to the 'other' category to balance Wanda's budget?

• $103

• $200

• $100

• $150