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Financial Literacy - 5th grade

Total questions: 21

Worksheet time: 22mins

Name
Class
Date
1.

The price of the shirt is $45. The total cost of the shirt is $47.95.

a)

Income/Payroll Tax

b)

Sales Tax

c)

Property Tax

2.

The value of a house is $250,000. the yearly tax on the house is $7,500.

a)

Income/Payroll Tax

b)

Sales Tax

c)

Property Tax

3.

A deduction is

a)

gross income

b)

money added to your income

c)

net income

d)

money taken out of your income

4.

Gross income is:

a)

the total amount of money you earn

b)

the amount of money you receive after decuctions are subtracted

c)

the total amount of money you spend

d)

sales taxes on items you buy

5.

Net income is:

a)

the total amount of money you earn

b)

the amount of money you receive after deductions are subtracted from your gross income

c)

the amount of money that is taken away in the form of taxes

d)

the hourly rate of pay

6.

Marco has the following deductions listed.

Federal Income tax: $44

Social Security tax: $23

Medicare tax: $5

Health Insurance: $24

What is the total amount of his deductions?

a)

$39

b)

$67

c)

$91

d)

$96

7.

David's gross income: $127.25

David's deductions: $25.20

David's net pay: ?

a)

$102.05

b)

$102.45

c)

$112.05

d)

$152.45

8.

Yvonne's gross income: ?

Yvonne's payroll deductions: $251.18

Yvonne's net income:$451.82

HINT: Work backwards

a)

$703

b)

$200.64

c)

$954.18

d)

$25,812.00

9.

When you make a withdrawal or take money out of your savings account, you ______________ the amount of money in your account.

a)

multiply

b)

divide

c)

add

d)

subtract

10.

When you make a deposit or put money into a bank account, what happens to the amount in your account?

a)

The amount increases

b)

The amount decreases

c)

There is no change

d)

None of the above

11.

Why is it important to create a budget and keep track of your spending throughout the month?

a)

So you know if you can afford to buy a new puppy

b)

So you ensure you do not spend more money than you take in each month

c)

So that you can track how much money you make

d)

So that you know when you can go on vacation

12.
It's important to spend money on things you need before spending money on things you want.
a)
True
b)
False
13.
What two things does a budget compare?
a)
Income and Expenses
b)
Savings and Interest
c)
Income and Investments
d)
Expenses and Expenditures
14.
When you set a budget, you should never revisit or adjust it.
a)
True
b)
False
15.

Expenses that stay the same every month are _________ expenses. Rent would be an example.

a)

fixed

b)

not necessary

c)

variable

d)

flexible

16.

If your income is $20 per month, how much should you spend each month to stay on budget?

a)

exactly $20

b)

between $20 and $30

c)

nothing

d)

$20 or less

17.
What is a disadvantage of using a credit card?
a)
It is easy to use.
b)
You can spend more than you have. 
c)
It can be used in emergencies.
d)
Banks sometimes give rewards on credit cards. 
18.
Mary has a part-time job. She can pay her bills but does not typically have much money left over. She gets into a car accident and must pay $400 for her car to be fixed. She only has $150 in her bank account and $24 in cash. How should she pay to fix her car?
a)
Check
b)
Cash
c)
Credit Card
d)
Debit Card
19.

Lydia's monthly income is $1,800. Her monthly budget allows for HALF her income to be spent on groceries, art supplies, and savings. Last month Lydia saved $500.

How much money did she have left for groceries and art supplies if she stayed within her monthly budget?

a)

$400

b)

$300

c)

$500

d)

$1,300

20.

Payroll tax

a)

is put toward Medicaid

b)

is put toward Social Security and Medicare

c)

goes to the employer

d)

goes to the employee

21.

Amy’s salary has a net income of $315 per week. If she pays $40 in income tax

and $25 in payroll tax, how could Amy determine her gross income? Why?

a)

315 – 40 – 25 = $250

Net income minus all deductions equals gross income.

b)

315 + 25 = $340

Net income plus payroll tax deductions equals gross income.

c)

315 + 40 = $355

Net income plus income tax deductions equals gross income.

d)

315 + 40 + 25 = $380

Net income plus all deductions equals gross income.