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Financial Literacy - Income, Employment, and Net Worth

Total questions: 16

Worksheet time: 10mins

Name
Class
Date
1.

Which is the greater amount?

a)

Net income

b)

Gross income

c)

It depends

d)

Net and gross income are the same thing

2.

On a paycheck or paystub, YTD stands for (a)  

3.

Which of these are the ways to increase your net worth? (Choose TWO answers!)

a)

Decrease your assets

b)

Increase your assets

c)

Decrease your liabilities

d)

Increase your liabilities

4.

When the bank pays you to use your money (or you pay the bank to use its money), the money paid is called

a)

A paycheck

b)

An asset

c)

Net income

d)

Interest

5.

What is a W-4 tax form for?

a)

Tell your job how much to withhold from your paycheck for taxes

b)

Tell your job how much money you earned at your last job

c)

Tell the government how much you earn at your current job

d)

Tell the government how much money you're paying in taxes

6.

All of us need to pay state and federal (a)   , which the government uses to pay for social security, medicare, building roads, public schools, military funding, and more.

7.

Drea's liabilities add up to $40,000. Her assets add up to $60,000. What is Drea's net worth?

a)

-$20,000

b)

-$100,000

c)

$20,000

d)

$100,000

8.

True or False: On average, people with college degrees earn more money in their lifetime than people who don't finish college.

a)

True

b)

False

9.

Which THREE of these answers could cause your net pay on a paycheck to be lower?

a)

Your net worth

b)

Federal taxes

c)

Money deducted for your retirement savings

d)

Money deducted for your gross income

e)

Money deducted to pay for your health insurance

10.

People who claim LESS allowances on their W4 form have MORE money withheld from each paycheck. This means when they pay their taxes in March/April, they will owe the government (a)   (more/less) money. They might even get a tax refund if they overpaid!

11.

True or False: When you start a new job, your employer will fill out your W4 form for you.

a)

True

b)

False

12.

Which of these are the THREE ways you can file your taxes?

a)

Hire a CPA (accountant) to help you file

b)

Ask your boss at work to help you file

c)

Buy a computer program to help you file

d)

Fill out the forms yourself and send them to the IRS

13.

Maya makes $10 per hour at her job. She works for 10 hours this week. True or False: Maya's net pay for this week is $100.

a)

True

b)

False

14.

Micah's liabilities add up to $50,000. His assets add up to $20,000. What is Micah's net worth?

a)

-$80,000

b)

-$30,000

c)

$80,000

d)

$30,000

15.

True or False: A house can be both a liability AND an asset

a)

True

b)

False

16.

Some companies might pay their workers a little less money, but they provide paid vacation, gym memberships, health insurance, extra money for retirement, or free meals. These are all examples of...

a)

Assets

b)

Liabilities

c)

Taxes

d)

Benefits