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EVERFI Lesson 1: Building a Balanced Budget

Total questions: 18

Worksheet time: 9mins

Name
Class
Date
1.

Which of the following is an example of a tax you must pay?

a)

Bounced Check

b)

Rental Payment

c)

Late Fee

d)

Social Security

2.

Which of the following is an example of a tax?

a)

Line of credit

b)

Rental payment

c)

Cash payment

d)

Medicare

3.

What are taxes?

a)

Taxes are sources of income

b)

Taxes are optional payments you make to state and local governments

c)

Taxes are refunds you receive for overpayment

d)

Taxes are mandatory payments you make to state and local governments

4.

When is a budget considered to be balanced?

a)

When the amount you earn is equal or less than to the amount you spend.

b)

When the amount you spend is greater than the amount you earn.

c)

When the amount you save is less than the amount you spend.

d)

When the amount you spend is equal or less than the amount you earn

5.

Which of the following budgets would be considered balanced?

a)

. A budget where the amount you earn is equal or less than to the amount you spend

b)

A budget where the amount you spend is greater than the amount you earn

c)

A budget where the amount you save is less than the amount you spend

d)

A budget where the amount you spend is equal or less than the amount you earn

6.

In a balanced budget, the amount you ______ is ______ the amount you earn.

a)

save; less than

b)

spend; greater than

c)

save; greater than

d)

spend; equal to

7.

Which of the following is a fixed expense?

a)

Clothing purchases

b)

Groceries

c)

Movie Tickets

d)

Rental Payments

8.

What is income?

a)

Income is payments you make to the federal government

b)

Income is money you receive after paying taxes.

c)

Income is payments you make to the government to pay for roads, bridges, and schools.

d)

Income is money you earn, usually from working at a job.

9.

Which of the following would be an example of a NEED?

a)

A new pair of headphones

b)

Designer shoes

c)

Your favorite candy

d)

A warm winter coat

10.

Which of the following would be an example of a WANT?

a)

A place to live

b)

Critical medicine

c)

A warm winter coat

d)

Movie tickets

11.

What are federal taxes?

a)

Federal taxes are payments you make to the state government where you live.

b)

Federal taxes are money you earn from the US federal government.

c)

Federal taxes are money you earn from working at a job.

d)

Federal taxes are payments you make the the US federal government.

12.

What is Medicare?

a)

Medicare is federal life insurance for people over age 65.

b)

Medicare is federal health insurance for people under age 65.

c)

Medicare is federal life insurance for people over age 65

d)

Medicare is federal health insurance for people over age 65.

13.

When creating a personal budget, it is important to consider things you _____, _______ things you ______.

a)

want; before; need

b)

need; after; want

c)

need; at the same time as, want

d)

need; before; want

14.

Which of the following items are typically included in a balanced budget?

a)

The amount you earn in income

b)

All of these items are included in a balanced budget.

c)

The amount to put away in savings

d)

The amount you pay in taxes.

15.

What is a variable expense?

a)

An expense that is the same during some months, and different during other months.

b)

An expense that is the same from month to month.

c)

An expense that is different from month to month.

d)

. None of the above.

16.

What is a fixed expense?

a)

An expense that is the same during some months, and different during other months

b)

. An expense that typically does not change month to month

c)

An expense that typically varies from month to month

d)

None of the above.

17.

Which of the following statements about startup capital is FALSE?

a)

Startup capital is the money spend in order to create a balanced budget for your personal finances.

b)

Startup capital is the money you invest in the form of supplies, marketing, legal services, and other investments to get your business up and running.

c)

Both A and B

d)

Neither A nor B

18.

What is take home pay?

a)

The amount you earn each month in income minus what you save

b)

The amount you earn each month in income minus what you spend.

c)

The amount left over from your monthly paycheck before deductions.

d)

The amount left over from your monthly paycheck after deductions.